The Week Ahead: Week of 10 July (GMT+3)

Tuesday, 11 July, 09:00 – EU German CPI (MoM) (Jun)

The June preliminary release of the Consumer Price Index (CPI) in Germany increased by 0.3% compared to the previous month. This persistent rise indicates that the country still has a significant challenge ahead in combating inflation. 

Wednesday, 12 July, 05:00 – NZ RBNZ Interest Rate Decision

As the inflation in Q1 2023 remained high with a rate of 6.7%, the Reserve Bank of New Zealand raised rates by 25 basis points to 5.50% in May and expects no additional policy tightening would be needed to tame inflation. 

Wednesday, 12 July, 15:30 – US CPI (YoY)

The May reading came in below market consensus, declining from 4.9% to 4.0%. Although inflation remains elevated, there are positive signs of a downward trend, aligning with the Federal Reserve’s hawkish stance aimed at achieving the 2% inflation target.

Wednesday, 12 July, 17:00 – CA BoC Interest Rate Decision

In June, while the market expected a pause of interest rate, the Bank of Canada surprised with a 25 basis point increase. Following the announcement, the central bank adopted a wait-and-see approach, possibly putting a pause on its hiking cycle in order to gauge the effects of tightening.  

Thursday, 13 July, 15:30 – US PPI (MoM) (Jun)

In a surprising turn, US PPI declined in May, dropping from 0.2% to -0.3%. This unexpected shift suggests a decrease in inflationary pressures across the economy, potentially offering some relief to consumers and giving the markets more hope for the Fed to start slanting Dovish.