Highlights
This week, the Bank of Canada on Wednesday is expected to lower its policy interest rate -- the target for overnight lending rates -- by another 25 basis points to 4.50 percent for a second straight meeting, to help cushion the impact of its earlier rapid credit tightening aimed at taming inflation. Sticky but easing inflation, rising unemployment and slower growth prospects have raised the possibility of a back-to-back rate reduction. Markets expect the bank to conduct two more rate cuts this year, in October and December. Governor Tim Macklem has said the pace of easing will be gradual and that the bank's policymakers are taking our interest rate decisions one meeting at a time.
The focus is also on the US second quarter GDP data on Thursday, which is expected to show a modest but faster pace of growth than in the first quarter, as well as US personal spending and income for June, which are likely to indicate sightly easing price pressures. Market expectations for the Federal Reserve is to stand pat at its policy meeting on July 30-31 and begin lowering interest rates in September.
On Monday, consumer inflation in Hong Kong remains low and stable, thanks to easy access to goods supply from mainland China. The annual CPI rate is forecast at 1.2 percent in June after rising slightly to 1.2 percent in May from 1.1 percent in April, when it decelerated sharply from 2.0 percent in March.
The Chicago Fed national activity index is expected to slow to plus 0.10 in June versus May's higher-than-expected 0.18 and April's lower-than-expected minus 0.26.
The focus is also on the US second quarter GDP data on Thursday, which is expected to show a modest but faster pace of growth than in the first quarter, as well as US personal spending and income for June, which are likely to indicate sightly easing price pressures. Market expectations for the Federal Reserve is to stand pat at its policy meeting on July 30-31 and begin lowering interest rates in September.
On Monday, consumer inflation in Hong Kong remains low and stable, thanks to easy access to goods supply from mainland China. The annual CPI rate is forecast at 1.2 percent in June after rising slightly to 1.2 percent in May from 1.1 percent in April, when it decelerated sharply from 2.0 percent in March.
The Chicago Fed national activity index is expected to slow to plus 0.10 in June versus May's higher-than-expected 0.18 and April's lower-than-expected minus 0.26.
Definition
Market Focus details key factors in the coming day that will impact the economic outlook and the financial markets. These include central bank events, economic indicators, policymaker speeches as well as expected political and corporate developments.
Description
Keeping up-to-date with event schedules and the economic calendar is key to understanding the global financial system. Econoday's Market Focus allows investors and policymakers to carefully track what will be making news and moving the financial markets in the coming day.
