Monday begins promptly with Japan prelim GDP the quarterly figure is expected at 0.2% anything less and surely the Bank of Japan could look to further measures to stimulate the economy. Although not the most crucial piece of USD data this week Monday sees the release of the Empire state manufacturing index. Used as a leading indicator of economic health anything above the projected 2.1 will surely see the USD gain further support. Also worth mentioning is the Swiss PPI monthly figure which is expected to show a decline from the last month’s figure of 0.1%, a higher number than -0.2% will surely bode well.
The week really gets started on Tuesday with data from Australia, Germany, The UK and US.
Early on we get monetary policy meeting minutes from OZ. This will provide the market with sentiment and see if further interest rates are likely and provide indication to timing.
From Australia the Traders will look to see if the pound slides further. The UK releases a handful data including CPI, PPI, output and HPI which surely highlight any slowdown in the UK property market following BREXIT. No doubt providing further issues for sterling.
UK CPI figures are anticipated to come in showing no change on the year. A number of 0.5% is awaited. The CPI is closely followed by the PPI demonstrating any price change in raw goods and materials. Forecast at 0.6% a number above this will be viewed positively for the pound. Finally, for the pound we see the announcement of the year on year retail price index. The number is expected at 1.7% and highlights the cost of household consumables. Any improvement on this number will help support the GBP.
Following the UK, we have German ZEW sentiment which is used to demonstrate whether analysts and investors are confident in the Economy. Anticipated to record a level of 2.1 this has the potential to disappoint. As German is viewed as the jewel in the Eurozone crown if confidence is low this could affect the Euro. Trade balance figures are also released and could missing the expected 23.2B
The afternoon moves to data from the US and Canada with CPI figures, building permits and housing starts from the US. All of these figures should be inline or show growth. Canada releases it manufacturing figures which are anticipated to reach 0.8%, previous figures showed decline so scope to move CAD price if better or worse than expected.