Data Barrage to Drive FX

At 2:00 AM Germany Q2 GDP q/q (exp 0.4%, prev 0.5%)
Germany Q2 GDP y/y (exp 2.7%, prev 3.3%)
At 4:30 AM UK July CPI m/m (exp –0.2%, prev 0.2%)
UK July CPI y/y (exp 2.3%, prev 2.4%)
UK July RPI m/m (exp –0.1%, prev 0.5%)
UK July RPI y/y (exp 4.3%, prev 4.4%)
UK July RPI-x m/m (exp –0.1%, prev 0.4%)
UK July RPI-x y/y (exp 3.2%, prev 3.3%)
At 5:00 AM Eurozone June Industrial Production m/m (exp –0.1%, 0.9%)
Eurozone June Industrial Production y/y (exp 2.3%, prev 2.5%)
Eurozone Q2 GDP q/q (exp 0.6%, prev 0.7%)
Eurozone Q2 GDP y/y (exp 2.7%, prev 3.1%)
At 8:30 AM Canada June Trade Surplus (C$5.6bln, prev C$5.76bln)
US Trade Deficit (exp $61.0 bln, prev $60.04 bln)
US July PPI m/m (exp 0.2%, prev –0.2%)
US July PPI-x m/m (exp 0.2%, prev 0.3%)

The dollar is mixed heading into the Tuesday session, trading higher against the euro and sterling, but losing ground to the yen amid heightened risk aversion. Central banks’ injection of liquidity has for the time being calmed market fears of a global credit crunch, helping to stabilize equity and money markets.

US economic data for release today will see July PPI and June trade deficit. The headline PPI figure is estimated to reverse the 0.2% decline from June, rising by 0.2%. The core PPI reading is forecasted to drift slightly to 0.2%, down from 0.3% in the prior month. Meanwhile, the June trade deficit is estimated to edge higher to $61.0 billion, compared with a deficit of $60.04 billion a month prior.