Another quiet night on the global currency markets last night with little to no volatility seen which is not unusual especially on a Monday with an economic calendar devoid of market moving news .Today is a different story with Nab Business confidence set to be released at 11.30 AEST . This tells us how some of Australia’s largest firms feel about the health of the Australian economy both now and going forward. Chinese New Yuan Loans also is set to be released today which shows how the Banks balance sheets in China increased or decreased for the month of July.
Tonight we have German Zew Survey which is an economic sentiment survey for the largest economy in the Euro- Zone. A Monthly survey , the Zew is a collection of 350 economists opinions on where they think the German economy is headed for the next 6 months . It defines those who are bullish about the German economy and those who are more pessimistic .Forecasts are for a slowing economy with Junes reading of 61.8 expected to give way for a lower reading of 54.0
We could see a further weaking of the Euro against a basket of currencies, especially the U.S Dollar if expectations are for a slowing economy .The Euro has lost a lot of ground against the Dollar and also the Aussie ever since Mario Draghi took the unprecedented steps to implement negative interest rates on banks on their deposits, basically in layman terms charging people to put their money with the bank in the way of savings.
Tomorrow in the Land of the Rising Sun, we have Japanese Gross Domestic Product, analysts expecting this to drop dramatically from the previous month, down from 6.7% in June to -7.1% in July. The Japanese economy has been mired in Recession since the mid 90s ,and with numbers like this we see no sustained recovery in sight .