A fairly light calendar again. In Europe the most interesting releases are Maymanufacturing production in the UK and foreign trade data for May in Germany. UK data continue to be extraordinarily strong and another solid increase is expectedin manufacturing production. In the US small business confidence for June deservessome attention. It has rebounded substantially in the past two months and is currentlyat its highest level since September 2007. Small business confidence should havestrengthened further in June.
In the US speeches by FOMC-members Narayana Kocherlakota (voter, dove)and Jeffrey Lacker (non-voter, hawk) this evening. It will be interesting to see ifthe communication from Fed turns less dovish in the wake of the very strong labourmarket report for June released last week. Kocherlakota has turned into a super-dove,recently indicating that the interest rate projections from the FOMC-members,suggesting the first rate hike by mid-2015, are too hawkish in his view. Lacker isinteresting because he will be voting next year and although he is regarded as a hawk,his views do not appear to have differed significantly from consensus recently.
ECB board members Christian Noyer and Luis Maria Linde are also scheduledto speak.
The Q2 earnings season kicks off. This morning Samsung Electronics reportedweaker-than-expected Q2 earnings but the shares managed to edge higher on anupbeat outlook. In the US the earnings season will kick off with Alcoa reportingQ2 results after market close in the US.
Read the full report: FX Daily