5:30AM GMT: The RBI (Reserve Bank of India) will meet to set its monetary policy. The bank meets every 2 months, with the last meeting on June 7th. The RBI’s official rate is the 1 day repo rate, which is essentially the rate for a collateralized loan. The bank last reduced rate to 6.5% in April, and we expect the RBI to keep rate rate stable today. However, if the interest rate were to decrease, the INR will depreciate.
6:00AM GMT: The Federal Statistics office of Germany will report on Balance of Trade. This figure is reported on a monthly basis, and today’s data will be that of June. The Balance of Trade is a flow statistic that measure how much export exceed import. The market expects trade balance to slightly drop from a surplus of 21 billion EUR last month to 20.8 billion. If this statistic exceeds expectation, the EUR will appreciate.
8:30AM GMT: The British Office for National Statistic will also report on Balance of Trade. This figure is reported on a monthly basis, and today’s data will be that of June. The Balance of Trade is a flow statistic that measure how much export exceed import. A negative value indicate a trade deficit, whereby import exceed export. The market expects trade balance to drop from a deficit of -2.26 billion to -2.7B. If this statistic exceeds expectation (less negative), the GBP will appreciate.