Slack volumes can bring volatile results
With the summer holiday season in full swing and with the upcoming bank holiday weekend, this could be described as potentially one of the quietest weeks of the year for the markets. Be careful though, the lack of money interest in the market around this time of the year has been known to cause a bit of volatility.
Last week was proof of this when the Euro/USD rate moved between 1.2450 and 1.2125 and GBP/USD traded up at 1.8160 earlier in the week to drop back to as low as 1.7890 in the second half of the week.
With no data out today let's have a quick look at the data for the rest of the week:
Europe perhaps has the busiest week ahead with sentiment indicators out tomorrow and Thursday. Germany releases their estimate 2nd Quarter GDP figures on Tuesday.
Sweden’s Riksbank is expected to hold rates steady at 1.5% when they meet on Wednesday after a half point cut at its previous meeting.
In the UK we can look forward to Wednesday when the CBI issues its monthly industrial trends report and the Nationwide house price survey is published.
Friday sees the first revision of the 2nd Quarter GDP figures for the UK where growth is expected to be revised upwards from 0.4% to 0.5% on the quarter. The estimates are however still likely to show GDP growth below trend for the fourth successive quarter, this might prove more significant for the market than the upward revision.
The demand for the US Treasury two-year note sale on Wednesday will be closely watched along with durable goods orders on the same day.
Central bankers will take a week break this week at a ski resort in Wyoming to add to the quiet tone of the week, Alan Greenspan is reported to also be at the resort.
Last week was proof of this when the Euro/USD rate moved between 1.2450 and 1.2125 and GBP/USD traded up at 1.8160 earlier in the week to drop back to as low as 1.7890 in the second half of the week.
With no data out today let's have a quick look at the data for the rest of the week:
Europe perhaps has the busiest week ahead with sentiment indicators out tomorrow and Thursday. Germany releases their estimate 2nd Quarter GDP figures on Tuesday.
Sweden’s Riksbank is expected to hold rates steady at 1.5% when they meet on Wednesday after a half point cut at its previous meeting.
In the UK we can look forward to Wednesday when the CBI issues its monthly industrial trends report and the Nationwide house price survey is published.
Friday sees the first revision of the 2nd Quarter GDP figures for the UK where growth is expected to be revised upwards from 0.4% to 0.5% on the quarter. The estimates are however still likely to show GDP growth below trend for the fourth successive quarter, this might prove more significant for the market than the upward revision.
The demand for the US Treasury two-year note sale on Wednesday will be closely watched along with durable goods orders on the same day.
Central bankers will take a week break this week at a ski resort in Wyoming to add to the quiet tone of the week, Alan Greenspan is reported to also be at the resort.
posted by Wise Money @ 9:25 AM
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