Welcome to the easyMarkets weekly outlook starting this Monday 11 September. We’ll be looking at the week’s key economic events on the financial calendar covering Monday to Thursday. Be sure to catch up with our Friday morning report that looks back at how the events played out and with a look at Friday’s events. It’s a fairly slow start to the economic calendar sandwiched between inflation figures from the UK at the beginning and from the US at the end. Thursday is jammed packed starting with jobs data from Australia, key interest rate decisions from the Swiss National Bank and the Bank of England, ending with the US CPI as mentioned.
Event: UK Consumer Price Index
Date: Tuesday 12 September 2017 at 08:30 GMT
Markets affected: EUR/GBP, GBP/USD
Trending hashtags: #gbp, #inflation, #cpi
The Consumer Price Index in the UK for July came in at 2.6%, showing a significantly higher inflation rate than the rest of its major trading partners. Inflation is expected to stay high for August with an increase to 2.8% and this, along with lacklustre Brexit negotiations with Europe, is likely to keep the sterling under pressure.
Event: US Producer Price Index
Date: Wednesday 13 September 2017 at 13:30 GMT
Markets affected: USD/JPY, EUR/USD
Trending hashtags: #usd, #ppi
The Producer Price Index in the US came in at a low -0.1% at the previous release showing a rather dismal picture for producers of commodities in the US. The Bureau of Labor Statistics analysis looks at the changes in prices for these primary markets across all processing chains of goods. The figure is an important indicator for commodities inflation and signifies the overall state of the economy. Expectations are for this reading to improve to 0.3%.
Event: Australia Unemployment Change
Date: Thursday 14 September 2017 at 01:30 GMT
Markets affected: AUD/USD, AUD/NZD
Trending hashtags: #aud, #employment
In July, Australia added 27,900 jobs to the market making it a 40-year monthly average high. Unemployment fell to 5.6% and analysts are forecasting for a further 24,100 jobs to be added in August with unemployment staying steady at its current rate of 5.6%.
Event: SNB Interest Rate Decision
Date: Thursday 14 September 2016 at 08:30 GMT
Markets affected: EUR/CHF, CHF/USD
Trending hashtags: #chf, #interestrate
The Swiss National Bank has kept the interest rate at a low 0.75% as the central bank looks to retain easy monetary policy for a while yet. Bank President, Thomas Jordan, has said as much as the SNB’s policy is to keep the franc in focus. Negative interest rates and the bank’s willingness to intervene if the CHF gets too strong are the pillars of their approach. Against the euro, the franc has fallen to 2.5-year low last month and as other central banks around the world look to return to normalization it may influence the Swiss bank to do the same. However, with the safe-haven status of the swissy kicking in over geopolitical tensions between North Korea and the US, and appreciating the currency, analysts are not expecting any changes to the interest rate this time around.
Event: UK Interest Rate Decision
Date: Thursday 14 September 2016 at 11:00 GMT
Markets affected: EUR/GBP, GBP/USD
Trending hashtags: #sterling, #interestrate
Nicknamed as the ‘Old Lady of Threadneedle Street’, the Bank of England has been living up to its name as it has been slow to move on any interest rate changes. Currently it is keeping its benchmark rate at a record low of 0.25% as regulators are worried over slow economic expansion. The inflation release earlier in the week may give more impetus for them to consider tightening monetary policy again.
Event: US Consumer Price Index
Date: Thursday 14 September 2017 at 12:30 GMT
Markets affected: EUR/USD,
Trending hashtags: #inflation, #usd
Consumer prices in the US increased just 1.7% for July, and missing analysts’ expectations of 1.8%, though it was up from 1.6% in June. The annualised increase for inflation increased 0.1% from the previous months to come in at 1.7% for July. Taking out the more volatile prices for food and energy, we see a CPI figure of 0.1% – the same figure that’s been seen for the last four months. Core CPI increased to 1.7% on a year on year basis. The rate is widely expected to remain unchanged at 1.7% in August.