German ZEW, CBRT decision and US housing starts to feature in packed calendar today - Rabobank

Piotr Matys, EM FX Strategist at Rabobank, suggests that after a slow start, the calendar is relatively packed for today.

Key Quotes

“Germany will publish the ZEW indicator with the current situation index seen declining to 51.8 in July from 54.5 in June and expectations plunging to 9.0 from 19.2 most likely on the back of the Brexit vote. Growing concerns about security in Europe may also undermine sentiment. A 17-year old Afghan refugee attacked passengers on a commuter train in southern Germany leaving four people injured.

In the US, housing starts are expected to edge higher to 1166k in June, up 0.2% m/m with building permits rising 1.2% m/m to 1150k.

The Turkish central bank will announce its decision at 12:00BST (13:00CET). We revised our initial forecast of a 50bps cut in the overnight lending rate to unchanged at 9.00%. Refraining from narrowing the interest rate corridor would indicate that the CBRT is not willing to take any additional risk at a time when the lira faces a potentially turbulent period in Turkish politics.”