The Federal Open Market Committee (FOMC) and the Bank of Japan (BoJ) will take centre stage this week, as both the central banks are scheduled to hold their monetary policy meetings. While the US Fed is expected to maintain status quo, the BoJ is anticipated to introduce additional stimulus measures. Although the US witnessed a series of positive data points last week in the form of nonfarm payrolls, retail sales and CPI, the nation’s inflation is still far away from the Fed’s target rate. As a result, the Fed seems hesitant to introduce an upward move at this meeting. On the other hand, given the sluggish growth in Japan, a stimulus announcement is widely expected from the BoJ this week. Today the German Ifo survey data for July came in better than expected. In the UK, the CBI industrial trends orders data for July will be released. In the US, the Dallas Fed manufacturing index will be eyed.
Global market participants will find themselves knee-deep in economic reports today. The day began on an optimistic note with all the data points released until now showing an upward movement. It all started with the UK as the nation’s house price index data surpassed expectations in July. Post that, the German unemployment rate continued to stay at an all-time low in July as the number of jobless people fell for the tenth straight month. Further ahead, the European Commission will publish the July figures for the Eurozone’s business climate and consumer confidence indices data. Later in the day, Germany’s preliminary consumer price index (CPI) for July is scheduled for release. Across the Atlantic, investors will witness the US weekly jobless claims, advance goods trade balance and the Kansas Fed manufacturing activity index data.