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