Here’re the Most Important Economic Events to Follow Next Week

After this week’s monetary policy meetings in the United Kingdom and Eurozone, the upcoming week will see new gatherings of central bankers in Japan and Switzerland. The United States, Canada, New Zealand and the United Kingdom will also publish high-impact reports which may move the markets.

Euro Area – The Euro had a fabulous week with five consecutive bullish days against the US dollar. Yesterday, the ECB’s Governing Council decided to leave rates unchanged, and Mario Draghi’s hawkish press conference caused the single currency to print one of its best trading days in the last few weeks. During the next week, Eurozone will release its final August CPI y/y on Monday, and ECB President Draghi will deliver another speech on Wednesday.

United States – After an eventful week for the US dollar with the USD Index printing one of its worst five trading days in 2018, next week won’t see much high-impact releases from the United States. Traders should focus on the Empire State Manufacturing Index released on Monday, and US crude oil inventories on Wednesday which have already missed market forecasts for four releases in a row. Risk sentiment and trade headlines will likely continue to drive the greenback in the week ahead.

United Kingdom – While the British pound rallied this week on positive Brexit developments, the currency will likely remain vulnerable to headlines in the week ahead. Any hints of new obstacles on the way to a potential trade deal could lead the currency to give back most of its gains accumulated during this week. Markets will also closely follow the UK CPI data which will be released on Wednesday, and the UK retail sales on Thursday to assess when the BoE may hike borrowing costs.

New Zealand – While risk currencies enjoyed an impressive trading week, it remains to be seen whether risk appetite will remain favourable for the Australian dollar and New Zealand dollar in the week ahead. Australia will release the RBA’s meeting minutes on Tuesday, which will likely reaffirm the previous stance and economic outlook of the central bank. New Zealand reports its quarterly GDP change on Thursday.

Emerging Markets – Among emerging markets, Turkey will report on the change in industrial production on Monday, South Africa releases its CPI numbers for August on Wednesday, and Mexico reports the unemployment rate on Thursday. Emerging market currencies had another roller-coaster week, with the Indian rupee hitting lifetime highs against the US dollar, and the Turkish lira rebounding strongly after the Central Bank of Turkey hiked interest rate from 17.75% to 24%.

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