Turkey situation remains a thorn in the side of risk appetite. The US has warned the country to expect more sanctions if it does not hand over the detained American pastor quickly. USD/TRY is currently up 0.3%, snapping a three-day losing streak. In a speech before the House of Representatives Standing Committee on Economics, RBA Governor Lowe expressed the opinion that a lower Aussie would be beneficial, helping to boost inflation and stimulate growth. The Aussie showed little reaction to the comments, instead posting gains after China announced a higher fix for the yuan versus the US dollar. Governor Lowe also said that the domestic economy was moving in the right direction, though he reiterated there is not a strong case for any near-term adjustment in policy and would likely keep the current policy in place until benchmarks for unemployment and inflation are closer.
Today’s European calendar is filled with Euro-zone data. The June current account balance sets things going followed by consumer price readings for July. Prices are seen rising at the same pace as June on an annual basis but seen slipping 0.3% month-on-month. The later session is more Canada-centric, with both national CPI data and the Bank of Canada’s core CPI readings scheduled. The US’ Michigan sentiment index is seen ticking higher to 98.0 in August from 97.9 the previous month.