China Flash Manufacturing PMI to Raise GDP Questions

The Chinese National Bureau of Statistics was under fire as several economists questioned the accuracy of the gross domestic product data released this week. The official GDP numbers showed the economy is growing at a 7 percent rate in April-June, faster than the international forecast of 6.8 percent. This comes after the Asian Development Bank cut annual growth forecast for China down to 7 percent in 2015 and 6.8 percent in 2016. Even with the optimistic growth indicator from China it still faces an uphill battle as there are more accommodative monetary and fiscal policies it can enact to help boost economic growth.

After Greek Vote in German Parliament Market is Back to Fundamentals

With the dust beginning to settle in Europe after the hectic negotiations between Greece and its creditors the purchasing manager’s index (PMI) will release preliminary data to gauge the state of the manufacturing industry. French manufacturing has impressed of late after posting a 50.5 reading and getting back into expansionary territory. German factories have been struggled with lower demand and a stronger EUR, but are still forecasted to post a 52.1 reading after posing a 51.9 last month. Output remains strong in Germany, but it is the new business demand and employment components that signal a potential slowdown.

PMI events to watch this week:

Thursday, July 23
9:45pm CNY Markit Flash Manufacturing PMI

Friday, July 24
3:00am EUR French Flash Manufacturing PMI
3:30am EUR German Flash Manufacturing PMI

*All times EDT
For a complete list of scheduled events in the forex market visit the MarketPulse Economic Calendar

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza