James Trescothick

With more than 20 years of experience in financial service industry, James is our Senior Global Strategist and the co-producer and presenter of easyMarkets educational videos. When he is not working on educational programs or preparing webinars, you can find him with the easyMarkets team giving seminars around the world.

Welcome to the weekly outlook starting this Monday 16 October. We’ll be looking at the week’s key economic events on the financial calendar covering Monday to Thursday. This is shaping up to be an action-packed week full of key economic indicator releases across the globe. We’ll be getting inflation data out of the UK and Europe, industrial production and housing from the US, jobs data from Australia and GDP figures for China.

 

Event: UK Consumer Price Index

Date: Tuesday 17 October 2017 at 08:30 GMT

Markets affected: GBP/USD, EUR/GBP

Trending hashtags: #gbp, #cpi, #inflation

 

With inflation in August hitting a five year high at 2.9% many will be closely following Monday’s report on key inflation data in the form of the consumer price index. A falling UK pound has left its mark with higher petrol and clothing prices. The CPI figure will be closely watched by the Bank of England as it considers its next move regarding interest rates.

 

Event: EU Consumer Price Index (September)

Date: Tuesday 17 October 2017 at 10:00 GMT

Markets affected: EUR/USD, EUR/GBP

Trending hashtags: #eur, #cpi, #inflation

 

August’s CPI for the Eurozone came in at a 0.3% month on month change and 1.5% on an annualized basis. Core CPI, which strips away volatile food and energy figures, was also 0.3% for last August and saw 1.1% year on year growth. Inflation is still a little below the 2% target for the European Central Bank’s liking but it is unlikely to stop the planned reduction of their asset buying programme.

 

Event: US Industrial Production (September)

Date: Tuesday 17 October 2017 at 13:15 GMT

Markets affected: EUR/USD, USD/JPY

Trending hashtags: #usd, #industry

 

Industrial production in August fell by -0.9% against the previous month due to activity being stalled by the hurricanes that ripped through the US. Expectation is for the industry to get back on track for September and increase by 0.3% as rebuilding will be needed due to the destruction caused by the extreme weather.

 

Event: EU Extraordinary Economic Summit

Date: Wednesday 18 October 2017 at 07:00 GMT

Markets affected: EUR/USD, EUR/GBP

Trending hashtags: #eur, #ecb

 

Eurozone leaders will gather on Wednesday to discuss concerns and issues facing the common region. Analysts are expecting that Brexit and Catalan’s drive for independence will be part of the discussions. The euro will be looking for mentions of further monetary tightening before it makes moves in any direction.

 

Event: US Housing Data (September)

Date: Wednesday 18 October 2017 at 12:30 GMT

Markets affected: EUR/USD, USD/JPY

Trending hashtags: #usd, #housing

 

Key housing data is due out of the US on Wednesday with Building Permits and Housing Starts reports. There were 1.300 million building permits last month and expectations are for 1.255 million for September. In August, housing starts saw a 1.180 million change and expectations for September are for 1.175 million. Housing data is important as it influences job growth and the overall GDP of the nation.

 

Event: Australia Employment Data (September)

Date: Thursday 19 October 2017 at 00:30 GMT

Markets affected: AUD/USD, AUD/NZD

Trending hashtags: #aud, #jobs

 

Last month’s employment data for Australia was much better than expected and gave a boost to the aussie. 54,200 new jobs were added in August far surpassing July’s 27,900 change and beating expectations. Expectations for September are for 23,800 jobs to be added. Unemployment for August remained pat with July’s figure of 5.6%, just as the markets were expecting. The Australian economy has been struggling on a number of levels but positive employment figures can only bode well for the future.

 

Event: China Gross Domestic Product (Q3)

Date: Thursday 12 October 2017 at 02:00 GMT

Markets affected: AUD/USD, CNH/USD

Trending hashtags: #cnh, #gdp

 

Last quarter the Chinese economy expanded by 1.7% on a quarterly basis and showed 6.9% growth on an annualised basis. The second quarter of the year showed the strongest growth for the economy for almost two years and surpassed the Government expectation of 6.5% growth for 2017. Analysts are expecting the third quarter of this year to see 1.4% growth quarterly and 6.7% improvement on this time last year.

 

Was this article helpful?

1 0 0