The main event is Bernanke's semi-annual testimony to the Congress where focus will be on hints about when the Fed will start scaling back its bond buying. While the statement may not add much new information compared to what was revealed in the latest Fed minutes, the Q&A session will be followed closely. Bernanke will probably be asked what is needed for the Fed to start tapering in September. Questions are likely to touch upon the labour market following the strong job report in June, and whether the Fed's concern about the low level of inflation has diminished with the higher figure for CPI in June, see WSJ. The testimony is particularly interesting, as it is the Fed's best communication opportunity for some weeks, since there is no press conference planned for the July FOMC meeting.
While we are waiting for Bernanke's testimony, the minutes from Bank of England's July meeting are likely to get some attention. This was the first meeting with Mark Carney at the head of the table. In a Bloomberg survey, 30 out of 45 economists said that Carney voted to hold bond purchases unchanged, see Bloomberg.
U.S. housing starts and permits are both expected to increase, signalling that the housing market is improving in line with yesterday's strong NAHB housing index.
The Bank of Canada is expected to maintain its overnight rate target at 1%. The rate announcement is the first with Stephen Poloz as Governor and will be monitored closely to see whether he reiterates that 'the considerable monetary policy stimulus currently in place will likely remain appropriate for a period of time'.
To Read the Entire Report Please Click on the pdf File Below.
While we are waiting for Bernanke's testimony, the minutes from Bank of England's July meeting are likely to get some attention. This was the first meeting with Mark Carney at the head of the table. In a Bloomberg survey, 30 out of 45 economists said that Carney voted to hold bond purchases unchanged, see Bloomberg.
U.S. housing starts and permits are both expected to increase, signalling that the housing market is improving in line with yesterday's strong NAHB housing index.
The Bank of Canada is expected to maintain its overnight rate target at 1%. The rate announcement is the first with Stephen Poloz as Governor and will be monitored closely to see whether he reiterates that 'the considerable monetary policy stimulus currently in place will likely remain appropriate for a period of time'.
To Read the Entire Report Please Click on the pdf File Below.