Key Economic Events and Reports of the Week Ahead
Next Monday should be pretty light day due to the absence of major events and reports on this day.
On Tuesday, the key reports will be the US consumer inflation and the index of economic sentiment in Germany from the private agency ZEW. Inflation in the US is expected to slow to 0.2% on a monthly basis. A positive surprise will heighten fears of accelerating inflation, real yield suppression due to monetary easing and put additional pressure on the US currency and upward pressure on Gold.
On Wednesday, investors' attention will be drawn to another piece of US inflation data - the Producer Price Index. This is a manufacturer's perspective on inflation in the United States and is just as informative as data based on consumer spending.
On Thursday, we traditionally expect the release of the data on applications for unemployment benefits. This is a high-frequency labor market data that sheds light on the dynamics of unemployment ahead of the release of Non-Farm Payrolls report.For the past four weeks, the number of unemployed in the US has been steadily declining, which allows stock markets to stay positive despite the delay in stimulus measures. The Fed’s Manufacturing Activity Index and the weekly US oil inventories report will also provide valuable insight into the health of the US economy and supply clearance in the oil market.
Friday will be an especially important day in terms of reporting as on that day, the US retail sales data for September and the Eurozone CPI for the 3rd quarter will be published. Retail sales are expected to rise by 0.4% (baseline reading), EU CPI is expected to show annual deflation of -0.3%. Recall that the ECB hinted that it is very concerned about the development of inflation, therefore, weak price growth will increase the chances of a QE announcement in December or at subsequent meetings.
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Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
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High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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