What to Look Out for Today – AUD and GBP Week Ahead

After all the news released from the United States – this week should have traders looking across the Pacific and Atlantic this week.

August 14th
Today the EU will announce data regarding their industrial production for June, both MoM and YoY – although considering the German economy is in an upward trend (even though June was a slower month for Deutche production) and one of the EU’s largest economy closely tied to the Union’s – these numbers should show a very slight dip from the previous 1.3%. At the moment forecasts are estimating a 0.4% drop for the month to month but a 2.9% year to year – which confirms that Europe is the midst of a proverbial growth spurt.
China is slated to release their industrial production and retail sales for July which is forecasted to gain 7.2% and 10.8% respectively – which may have effect on the flailing Asian markets (a side-effect of the frictions between US and N. Korea).

August 15th
Tomorrow August 15th, Australia will release its Central Bank’s meetings – which traders are hoping will yield more optimistic data, since the bank’s policy has been dovish as of late.
Germany will also release their Gross Domestic Product (QoQ, YoY) which at least the Quarter to Quarter is expected to stay the same.

This is where the onslaught of UK relevant information will begin – starting with the CPI MoM and YoY although the month to month isn’t expected at the moment to fluctuate, the year to year is expected to see a 2.6% increase. UK Core Price Index (MoM) is expected to increase 2.4%, PPI Core Output MoM and YoY both are expected to go up -0.2% and 2.9% respectively. The UK’s Producer Price Index Input MoM on the other hand is speculated to fall slightly by 0.4%. The Producer Price Index Input YoY on the other hand is expected to go up by 9.9%.

The PPI Output MoM is expected to remain at its current rate and the YoY is expected to gain 3.3%.
US Import and Export Price index (YoY), Retail Sales (MoM) and Retail Sales excluding Automobiles (MoM) are all slated to be released on the 15th and although the USD has been down recently against other G10 currencies, judge the recent NFP increase, overall growth seems to be the trend Stateside.
US NAHB Housing Market Index – which is expect only to increase by a single point, might not effected markets significantly even though it is an important index.

August 16th
Traders will most likely follow the EUs GDP (YoY and QoQ) for the second quarter – to confirm if the growth trend Europe is experiencing will continue.

With OPEC+ continuing to chastise its members to meet their lower output obligations – commodity traders will likely be looking to US EIA Crude Oil Stocks Change – which is expected to go from -2.720M to -6.451M. The US Fed is also releasing their minutes, which will likely go over without major announcements since a gradual interest rate increase was spoken about earlier in the month.

August 17th
Australia’s unemployment rate will be released, which is currently at 5.6% and Employment Change which is currently at 14K.

The same day we will receive further Euro-centric data released including CPI for July and the ECB’s Policy Meeting Accounts.

August 18th
Finally Friday will be a quiet day – at least regarding the economic calendar. Although various currencies will release data – the stability of their indices will likely not effect markets.

This article comprises the personal view and opinion of the STO Investment Research Desk and at no time should be construed as Investment Advice.

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