FINANCIAL MARKETS LOOK TO YELLEN TEXT AND TESTIMONY ON CAPITOL HILL

POLICY MAKERS SET THE TONE

Federal Reserve Chair Janet Yellen testifies before the House financial services committee on Wednesday, a prepared text of Janet Yellen comments will be released to investors ninety minutes before she testifies on the hill.

Janet Yellen will also repeat her comments on Thursday, in front of the Senate Banking committee, and also answer questions from financial services committee members.

FOMC members Robert Kaplan and Lael Brainard also deliver key speeches on Federal Reserve monetary policy this week, whilst Bank of Canada Governor Stephen Poloz holds a press conference after the BOC rate decision on Wednesday.

Monday July 10, CHINA Consumer Price Index

China releases inflation figures for the month of June as financial markets start the new trading week. The June consumer price index is expected to show that monthly Chinese inflation declined -0.1%, whilst the annual inflation figure is expected to come in at +1.5%.

Tuesday July 11, U.S Jolts Job Openings

The U.S Bureau of Labor Statistics releases job opening data for the month of May, the survey helps measure job vacancies based on employment, job openings, recruitment, hires and separations.

FOMC Member Lael Brainard will also deliver a speech about current U.S monetary policy, at the Columbia University's School of International and Public Affairs, in New York.

Wednesday 12 July, Bank of Canada Policy Decision

The long awaited Bank of Canada interest rate decision and policy statement is released on Wednesday. The Bank of Canada are expected to increase interest rates by 0.25%, from the current rate of 0.50%. Bank of Canada Governor Stephen Poloz, holds a press conference shortly after the official monetary policy report.

Thursday 13 July, CHINA Trade Balance

The General Administration of Customs for the People's Republic of China, release the official trade balance figures for the month of June. The Chinese trade balance is expected to increase 42.44 Billion U.S dollars, improving on the previous months 40.18 Billion U.S dollars.

The expected increase in the Chinese trade balance indicates that more goods and services were exported than imported, thus this improvement reading should be taken as positive for the economy, and the CNY currency.

Friday July 14, U.S Consumer Price Index

The release of June inflation figures for the United States takes on extra significance, as a number of FOMC voting members remain concerned about weak inflation in the U.S.

The consumer price index for the month of June is estimated to rise by 0.1%, whilst the CPI figure excluding food and energy, is expected to rise by 0.2%. The annual figure is also expected to rise 1.7% vs 1.9% last month.