Data on Q2 GDP in Japan and Great Britain come out this week. The Reserve banks of Australia and New Zealand release the interest rate decisions. The U.S. will consider a list of European goods to impose extra import duties on. Italy’s governing coalition will be tested.
August 5. Employment in New Zealand. US tariffs for the EU.
Data on employment in New Zealand comes out at 22:45 GMT. Experts expect a 0.5% increase in employment, which is quite an average value. Perhaps, after last month’s decline, the report will cover the previous negative.
If there is another decline, the New Zealand dollar could be sold off.
There will be a public hearing in Washington on a new target list of EU imported products, which would be subject to increased tariffs. Earlier, the U.S. authorities had announced that they are ready to impose additional tariffs on goods valued $21 billion.
The aggravation of trade relations between the U.S. and the European Union followed the EU refusal to agree on a subsidy for the construction of civil aircraft with the WTO.
August 6. The RBA interest rate decision. A political crisis in Italy
The Reserve Bank of Australia releases its interest rate decision at 04:30 GMT. According to the analysts’ forecasts, the index will be kept at the same level of 1.0%. The bank cut the rate by 25 basis points last mont.
A vote of no confidence of the governing coalition will be held in the Italian Parliament. Perhaps the “Five Star Movement” and the “League” will not remain in their current arrangement. If this scenario is realized, early parliamentary elections will be scheduled in Italy.
August 7. The RBNZ interest rate decision. Changes for Litecoin
The Reserve Bank of New Zealand releases its interest rate decision at 02:00 GMT. After the U.S. Fed decided to cut the key rate, the similar steps are quite likely to be taken by the RBNZ.
The reward for mining a new block in the Litecoin cryptocurrency network will be halved. As a rule, such situations lead to a decrease in mining activity, which has a positive effect on the quotes of the cryptocurrency.
August 8. GDP in Japan
Japan releases its preliminary Q2 GDP at 23:50 GMT. Earlier, the head of the Central Bank of Japan Haruhiko Kuroda had announced the slowdown of activity in a number of sectors of the economy. We don’t expect any positive signals this time.
August 9. UK GDP. Negotiations in Cyprus
The UK Q2 GDP comes out at 08:30 GMT. Despite the risks of “hard” Brexit, the residents of the UK have not been limiting their spending, which is proved by the latest report on mortgage lending. Perhaps the new data will be also positive.
President of Cyprus Nikos Anastasiadis is to meet the leader of the Turkish Cypriot community Mustafa Akinci. New Greek Prime Minister, Kyriakos Mitsotakis, awaits this meeting with optimism on the issue of the northern part of the island, the self-declared Turkish Republic of Northern Cyprus supported by Turkey.
Tensions on the island have increased since Turkey began preparing for exploitation of hydrocarbon resources along the coast of Cyprus.