The Change In The Price Of Goods And Services And The Economic Outlook In Europe
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The CPI in Germany and the overseas. Today, data on the economic outlook for the Old Continent will also be published. And the UK shared data on unemployment and average wages.
Positive result of earnings and unemployment
At 8:00 CET, the UK released data on earnings and unemployment.
The published data on average earnings + bonuses showed an increase. The ratio increased from 5.1% in July to 5.5% in August. There is a positive reading not only for labor but also for the pound. The current reading is also higher than forecast (5.4%).
Good news for the British economy is the August unemployment rate reading. The unemployment rate dropped to the level of 3.6%. It was predicted that unemployment in August would be the same as in July. The reading is below forecast (3.8%) and is taken as positive for GBP.
Despite the positive reading on the unemployment rate, the number of unemployed rose in August. The number of non-working people was expected to be -13.2K, but the current reading shows that this number increased to 6.3K in August.
Read more: Next Week Is Full Of Important Information From Great Britain| FXMAG.COM
Moreover, head of the BOE's Monetary Policy Committee, Andrew Bailey, is set to speak at 10:00 CET.
German CPI remained unchanged
In Germany, the CPI index reached the level of 0.3%. This was the expected level. This means that there has been no change in the price of goods and services.
Source: investing.com
OPEC Raport
At 13:00 CET the monthly report on the OPEC crude oil market will be published. Such a report covers the main issues affecting the global crude oil market and provides forecasts for the development of the crude oil market for the coming year, as well as a detailed analysis.
The Consumer Price Index in USA
The United States will release CPI data at 14:30 CET.
The Consumer Price Index excluding food and energy is expected to remain at its July level, 0.3%. The index, after reaching the highest level in June (0.7%), in July fell to the level of 0.3%, which is exactly the same as in March. As the data show, after the March decline, it gradually increased. Decrease in this period was caused by the geopolitical situation, therefore it is not expected to decline in August.
Source: investing.com
The change in the price of goods and services, which reached 0% in July, is expected to drop to -0.1% in August. In the previous period, the CPI fell from its highest annual reading of 1.3% in June. The July reading was negative because it was lower than expected (0.2%). A positive reading from August may have a positive effect on the US dollar.
Source: investing.com
Germany’s economic prospects
At 11:00 CET They will publish data on economic prospects. Despite the fact that in January and February the reading was above zero, i.e. it was positive, it was negative (below zero) for the following months. Readings from March to August, although negative, did not maintain a uniform trend. Once improvement in the indicator and in Germany ZEW Economic Sentiment occurred in June (-28.0). It was an increase, that is also an improvement in the economic outlook from the May level of -34.3. After the improvement in June, the indicator dropped sharply in July to the level of -53.8, and then continued its decline in August and reached the level of -55.3. The current reading is expected to follow a downtrend to -60.0. This means that the economic prospects in Germany are not improving, on the contrary - they are worsening.If the economic outlook for the main economy in the European Union has deteriorated, it may mean that it will also worsen in the euro zone.
Source: investing.com
At 11:00 CET, the European Union also publishes data on the economic outlook. As the data shows, the economic outlook follows the trend from Germany. In contrast to Germany, the deterioration occurred two months later, ie in May. The downward trend is expected to continue. The index is projected to drop from the August level of -54.9 to the level of -58.3. This may mean that the economic prospects are constantly deteriorating not only in Germany but also throughout Europe.
Source: investing.com
Source: https://www.investing.com/economic-calendar/
