Summary:
- Spanish CPI seen accelerating to 0.6% YoY in July
- Dallas Fed index expected to recover greatly in July
- Bank of Japan to announce rate decision over the night
Economic calendar looks empty today as it is often the case for Mondays. A few semi-important readings from Europe will be released in the morning with the preliminary Spanish price growth data for July being the only noteworthy one. It will be released at 8:00 am BST and is expected to show headline CPI accelerating from 0.4% YoY to 0.6% YoY. Core gauge is seen ticking higher from 0.6% YoY in June to 0.8% MoM in July. Moving on to the US trading hours, Dallas Fed index will be released at 3:30 pm BST. After plunging from -5.3 pts in May to -12.1 pts in June, the index is expected to see significant rebound in July and retrace back to -5 pts. Last but not least, traders with exposure to the Japanese yen should keep in mind that the Bank of Japan will deliver rate decision over the night (Tuesday, 4:00 am BST). No change in rates is expected but the Bank may address dovishness of the other monetary authorities.
