The week has begun on a quiet note for economic releases globally, however U.S. economic reports scheduled later this week will be closely eyed to gauge the pace of growth momentum, as well as, the inflation of the nation. Market participants will keenly eye some significant speeches by some of the Fed policy presidents later today, including Fed’s Evans speech, for further cues on the timing of the Fed’s rate rise. Investors will be also watching for a speech from the Bank of Canada’s Governor Poloz, which have the potential to bring volatility to the CAD crosses. Later in the day, Deputy Governor of the Reserve Bank of Australia Philip Lowe’s speech will attract the trader’s attention. It will be interesting to see if it makes any comments on the recent AUD appreciation, following three consecutive negative months against the USD. Overnight, the Bank of Japan will release its monetary policy meeting minutes and National Bank of Australia will release Business Confidence for September.
On [B]Tuesday [/B]morning, Germany’s and Sweden’s final Inflation rate for September will be printed. Later in the morning, British inflation rate will be out as well, alongside other less important indicators like retail price index, producer price index and BoE credit conditions survey.
A while later, the ZEW Survey will inform us for October’s Economic Sentiment and Current Situation in Germany as well as Economic Sentiment in Eurozone. Going to U.S., the monthly budget statement for September will be eyed. Late at the afternoon, attention will be turned to New Zealand, where the RBNZ Governor Wheeler will give a speech. In Australia, the Westpac consumer confidence for October will be out. Overnight, Japan will release its inflation rate for domestic corporate goods followed from China’s final inflation rated for September.
Early on [B]Wednesday[/B], French, Spanish and Italian inflation rates for September will be released. In the morning, the UK scheduled economic announcements will hog the limelight. The employment report for September will be published, expected to show that the UK economy added 2.3K jobs in September from -1.2K the month before. The unemployment rate for the three months to August is predicted to have remained at 5.5% while the average earnings are forecasted to have increased by a steeper pace than the two previous months. In Eurozone, traders will keep a tab for industrial production for September which is anticipated to have slowed down in August. In US, traders will cautiously eye the retail sales for September and business inventories for August.
The Fed’s Beige book will also be out. During the night, the Australian employment report will capture traders’ attention. The Australian economy is forecasted to have added 5k jobs in September fro17.4k and the unemployment rate is expected to have picked up slightly to 6.3% from 6.2% before. Australian consumer inflation expectations for October will also be out.
On [B]Thursday[/B], U.S. inflation rate will the spotlight of the day. The market expect the indicator to have slumped slightly in the negative territory again by -0.1% on a yearly basis, from 0.2% before.
Speeches from three Fed and FOMC policymakers, James B. Bullard and William C. Dudley and Loretta J. Mester will follow. Later in the day, New Zealand will release its Inflation Report for Q3. Overnight, the Reserve Bank of Australia will release is Financial Stability Review.
The focus of attention during [B]Friday[/B]’s European morning will be on Eurozone, which will release CPI figures. The Eurozone CPI is expected to stay at -0.1% yoy, with the core rate also forecast to remain at 0.9% yoy. Normally no change from such a low rate could be expected to weaken the euro, but with the ECB likely to be on hold, inflation would have to change dramatically in order for it to be market-affecting. During the same time, Eurozone will announce its Trade Balance for August.
On a quiet day in terms of economic data in U.S., figures on Industrial Production will be released at 13:15 GMT and while these numbers are not the most closely followed by markets, they have reflected some interesting developments in recent months. U.S. Industrial Production plunged 0.4% in August, a sign domestic economic growth could slow in the final months of the third quarter. The Industrial Production for September is expected to have fallen 0.2% mom. Later in the day, the preliminary University of Michigan Consumer Confidence index for October is forecast to be revised up to 87.5 from the preliminary 87.2. The U.S. Capacity Utilization is also coming out. Finally, the Job Offers and Labor Turnover Survey (JOLTS) will give further insights into the U.S. labor market pulse.