Week ahead: China trade balance, Boe rate decision, US retail sales data in focus

By FXStreet FXStreet (Mumbai) – The most important economic events this week include the BoE’s rate decision, UK’s industrial and manufacturing production data, China’s trade balance, Australia’s employment report and of course the US producer price index and retail sales data scheduled to be released on Friday. Japan’s machinery order data will also be released this week and if market expectations hold true, machinery orders are seen falling sharply from the erstwhile 10.3 per cent increase. In the wake of the heightening tensions over China’s slowing economy, markets will closely watch the trade balance data. China’s central bank last week had devalued the yuan twice with the primary objective of helping exporters. China’s weak fundamentals have made investors jittery and had caused stock prices to slide first on Monday and then again later in the week.
As Australia rebalances its economy away from the resource sector, it will be interesting to watch whether other sectors have been able to make up for the lost jobs in the resource related industries.

The BoE will announce its rate decision on Thursday. Once again the central bank will likely hold rates steady. Given the low growth in wage factor and also a decline noticed in manufacturing …read more

Source:: FX Street