From pivotal inflationary reports to key central bank decisions, the upcoming days are set to be a whirlwind of activity for investors, policymakers, and financial enthusiasts alike.
Among the headline events, we'll be delving into the US CPI report, August's Retail Sales, September's preliminary Consumer Sentiment Index, the anticipated ECB Interest Rate Decision, and the GDP m/m announcement.
Dive in as we dissect these top economic events!
🇬🇧 GDP m/m
On Wednesday, at 9:00 GMT+3, the spotlight will be on the 🇬🇧 GDP m/m announcement. In the prior release, the growth rate was noted at 0.5%. However, for this upcoming disclosure, predictions suggest that the figure might stay consistent. Such results, whether in line with expectations or deviating, can potentially sway the GBP/USD pair. It's noteworthy to mention that the GBP/USD has been especially unstable following the recent employment data released from the UK.
🇺🇸 August’s Consumer Price Index (CPI)
On Wednesday, at 15:30 GMT+3, a crucial report is set to be released. This report gauges the fluctuations in retail prices for goods and services over a designated duration and stands as one of the principal indicators of inflation. The other significant measure is the Personal Consumption Expenditures (PCE).
The CPI report is intently monitored by regulators, enterprises, and the general public, since it mirrors the economy's pricing trends. If the CPI values surpass expectations, it could not only curb consumer spending intentions but also influence the commercial perspective. It's noteworthy that the dollar currently stands above 104.70. The Federal Reserve integrates the CPI data when deliberating on policy rate determinations.
🇺🇸 August’s Retail Sales
On Thursday, the US Census Bureau is set to unveil the August's Retail Sales report. This document quantifies the value of goods bought by consumers during a given time frame. For economists and decision-makers, it serves as a pivotal tool to gauge consumer demand, a primary contributor to GDP expansion. As such, Retail Sales function as a forward-looking metric, offering insights into both the imminent quarter's economic progress and the inflation tendencies related to demand.
It's important to note that this release will occur at 15:30 GMT+3.
🇺🇸 September’s Consumer Sentiment Index
On Friday, at 17:00 GMT+3, the preliminary Consumer Sentiment Index for September will be presented by the University of Michigan. This report sheds light on the degree of trust consumers place in the economy. Such confidence plays a pivotal role in influencing short-term consumer expenditure. Consequently, economists, analysts, and policymakers utilize the Index as a precursor, assisting them in discerning impending patterns in consumer demand that inherently impact economic development.
🇪🇺 ECB Interest Rate Decision
On Thursday, at 15:15 GMT+3, attention will shift to the European Central Bank's (ECB) Interest Rate Decision. Currently, the rate stands at 4.25%. Despite mounting inflation pressures in the Eurozone, analysts are forecasting that the rate will stay steady this session. However, any decision made, be it to maintain the status quo or to implement a 25 basis point rate hike, has the potential to influence the EUR/USD and various other currency pairs, causing significant market movements.
That's it for this week! 👋
