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Key events on Tuesday - RBS

FXStreet (Bali) - RBS FX Strategists review the key events on Tuesday, emphasizing a speech by BoE's Carney.

Key Quotes

"Bank of England Governor Carney delivers two keynote speeches this week, starting with a speech at the Trades Union Congress in Liverpool tomorrow before a testimony later this week at the Treasury Select Committee. We expect at both events Governor Carney’s comments on monetary policy will reflect a central bank that is data-dependent on the timing of the first rate hike while noting that hikes, when they begin, will likely be “gradual and limited.”

"Over the weekend, China released trade figures which showed the trade surplus rose to another record large in August. While we feel this places pressure on CNY appreciation, property weakness continues to weigh on growth. For more on how the trade figures impact our expectations for CNY and the macro-policy stance, please see Louis Kuijs’ latest China Alert. New Yuan loans data should be a key focus as officials interpret the need for new measures to increase growth. New Yuan loans tumbled in July to their lowest level since 2009, and August figures will be released this week (time not determined) along with money supply figures."

"Canadian housing starts for August are released, and the surge in building permits presents upside risks to housing activity, which is positive for CAD. Building permits in July rose by over 10% for a third consecutive month (and a fourth consecutive monthly increase). There were strong gains in multi-family construction intentions in Toronto and Vancouver in July, the chief two areas of concern for the Bank of Canada in terms of housing market imbalances. The acceleration in building permits over the past few months bodes well for August housing starts, and the pick-up in homebuilding intentions may put pressure on the BoC to acknowledge that the risks surrounding household imbalances are increasing. "

"Finally, a busy data week in Australia begins with investment lending and home loans figures released tonight. August employment will be released later this week, with the unemployment rate in focus after the rate unexpectedly jumped 0.4% in July."

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