Fundamental Analysis

Weekly Preview Report 21/07/2017

• July 21, 2017

WEEKLY PREVIEW: WEEK ENDING JULY 28^th 2017 (All times are GMT+3.)   Monday 24^th July- Eurozone PMI surveys (11:00) Eurozone Services and Manufacturing sectors are set to maintain a healthy pace of growth for July, with forecasts of 55.6 points and 57.2 points respectively. Both indicators have trended above the 55 point level for the year so far, indicating business leaders continue to be optimistic about future economic conditions in the Eurozone.   Tuesday 25^th July- Ifo German Business Climate (11:00) A follow on from the business surveys released on Monday, is the German Ifo Business Climate report. As the Eurozone’s largest economy, the report is considered a leading indicator of future economic health. Although optimism is set to pullback slightly to 114.9 points for July, the indicator has been steadily climbing in the year-to-date.   Wednesday 26^th July- U.K. Prelim GDP (11:30) Second quarter economic growth is estimated to reach 0.3% for the U.K. representing only a slight improvement on first quarter growth of 0.2%. Retail sales are estimated to have increased by 1.5% for the second quarter, according to the Office for National Statistics which should translate to positive growth numbers.   Thursday 27^th July- Core Durable Goods Orders (15:30) After a paltry rise of 0.1% Core Durable Goods Orders for May, orders are set to rise by 0.3% in June. Orders have either met or missed expectations each month of the current year, with two consecutive months of contraction in the second quarter. Given the fact that the U.S. dollar was weaker in May, it could be cause for concern for U.S. Manufacturers.   Friday 28^th July- U.S. Advance GDP (q/q) (15:30) Economic growth in the U.S. is forecast to rise by 2.5% for the second quarter, against a rise of 1.4% in the first quarter. In June, the International Monetary Fund cut growth forecasts for the U.S. based on political uncertainty with an estimate of 2.1% rise in growth for 2017.