Great Britain’s CPI Lower Than The Expected, Eyes On US PPI
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Yesterday, all eyes were on the US inflation report. Today, reports will come in not only from overseas, but also from Europe and the islands in the Pacific. Traders mainly focus on data that can affect major currency pairs
Decrease in New Zealand Current Account
At the beginning of today at 0:45 CET New Zealand provided data on the Current Account index YoY and QoQ.
The difference in value between exported and imported goods from quarter to quarter was lower than expected. It was predicted that in this period it would reach the level of -4.70B, while the reading would reach the level of -5.22B.
Also, the Current Account YoY measure was lower than expected. The current reading was at -27.82B. It was expected to drop from -23.27B to -26.65B.
That reading is taken as negative for the New Zealand currency and may affect the Australian dolar.
Inflation on the islands
At 8:00 CET the Great Britain released CPI data. The change in prices of goods and services in August was lower than in July. The CPI index in August reached the level of 9.9% and was lower than the expected 10.2%.
This report could impact the pound's performance today.
India’s WPI
India has published a report on the change in the price of goods sold by wholesalers. The result is lower than expected. India Wholesale Price Index (WPI) Inflation YoY reached 12.41% in August. It was forecasted that the WPI would drop from 13.93% to 13%.
Until May, the index was growing. The highest reading was at 15.88% and has been in a downward trend since then. This means that the impact on inflation is declining/weakening.
Source: investing.com
Industrial prodution in Europe
At 11:00 CET Eurostat will publish a report on industrial prodution. During the year the readings were positive for the Euro, they were higher than expected. The value of protection by manufacturers, mines, and utilities in the previous period was 0.7%. It is forecasted that in the current period, i.e. in August, it will drop to the level of -1.0%.
Source: investing.com
The European Central Bank’s speeches
- European Commission President Ursula Von der Leyen spoke at 9:00 CET
- Andrea Enria, Chair of Supervisory Board of the European Central Bank, spoke at 9:30 CET
- Philip R. Lane, member of the Executive Board of the European Central Bank, is set to speak at 13:00 CET
- Elizabeth McCaul, member of the Supervisory Board (ECB representative), is set to speak at 14:00 CET.
Each of the speeches can provide traders with valuable information on future monetary policy.
The change in prices of goods sold
At 14:30 CET the United States will release data on the change in prices of goods sold by manufacturers. The PPI reached its highest level in March (1.4%), in April it fell to 0.5%. After this decline, they will start to rise again.The previous reading from July shows a drastic decline compared to the June figures. The change in price is forecast to increase from -0.5% in July to -0.1% in August.
Source: investing.com
U.S. Crude Oil Inventories
The weekly change in the number of barrels of commercial crude oil held by US firms will be published at 16:30 CET. The reading from the previous week weakened the demand for crude oil. The increase from the previous week was significantly higher than expected. The number reading is forecast to reach 0.833M, which is projected to drop from 8.844M.
Source: investing.com
Summary
- 00:45 CET New Zealand Current Account
- 8:00 CET Great Britain CPI
- 8:30 CET India's WPI Inflation
- 9:00 CET European Commission President Speech
- 9:30 CET ECB's Enria Speech
- 11:00 CET Industrial Prodution in Europe
- 13:00 CET ECB's Lane Speaks
- 14:00 CET ECB McCaul Speaks
- 14:30 CET US PPI
- 16:30 CET U.S. Crude Oil Inventories
Source: https://www.investing.com/economic-calendar/
