With US markets mainly closed for the next couple of days, it is worth looking ahead to the weekend and important data due from China. Market observers in the past have noted that South Korean inflation data has been closely linked to that of China, who are due to release June CPI on Monday. South Korea’s latest data  released yesterday showed June CPI was up 2.2% (versus a consensus of 2.5%), its lowest reading for almost 3 years, consensus is for a slowing rate for China at 2.3% and if confirmed or even lower a reserve ratio requirement cut could be on the cards, certainly a possibility which should be kept on peoples radars.

 

Posted by Philip Ball | Sales and Trading