The new week is relatively scanty in terms of economic news data that can be considered tradable. However, there will be some big news out of Europe, as well as news from the US that is likely to add to the interest rate discussion in the United States. Here are the economic news data of interest this week.
This morning, the UK had some more positive news which added to the recent surge of the British Pound. Both the monthly GDP and manufacturing production exceeded estimates, allowing the GBPUSD to push up from the intraday low of 1.2280 to just short of the 1.2389 mark in what has been a stellar bullish beginning to the week.
Further news from the UK that will impact the GBPUSD will be from US data as well as Brexit headlines.
The US will release a number of data this week. On Friday, the Retail Sales and Core Retail Sales will be released at 12.30pm GMT. But before then, Thursday will see the release of consumer inflation data. The CPI and Core CPI are expected to come out at 0.1% and 0.2% respectively, representing a cooling from last month’s data. Market participants will be watching this closely as the FOMC uses consumer inflation targets as part of the criteria it uses to set the interest rates. With markets still heavily divided on whether there will be a 25bp rate cut or not this month, the CPI figures should make for an interesting debate before the FOMC meeting on Wed September 18.
Perhaps the biggest news for the week will come out of the Eurozone, as the European Central Bank meets to decide its refinancing rate. However, the bigger news will be on whether the ECB will follow through with its widely publicized stimulus package rollout. Will this happen and if it does, what will be the extent of the stimulus? I will be analyzing this on Wednesday or Thursday morning so you know how to trade the EURUSD on that day. Stay tuned right here on InvestingCube for more.Don’t miss a beat! Follow us on Telegram and Twitter.
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