The week ahead
It’s a particularly busy week ahead on the economic calendar, with 76 stats in focus in the week ending 3rd September while the week prior had 49 stats as key points of interest.
In the first half of the week, consumer sentiment, ADP nonfarm employment, and ISM Manufacturing PMI figures are in focus.
In the 2nd half of the week, the focus will shift to the jobless claim figures on Thursday.
Wrapping things up, however, will be the nonfarm payrolls and ISM Non-Manufacturing PMIs for August. Another surge in hiring and that could be the green light for the FED to make a move.
In the week ending 3rd September, the Dollar Spot Index fell by 0.87% to 92.686.
EUR (€) & GBP (£)
It’s a particularly busy week on the economic data front for the euro but a quiet one for the pound.
On Tuesday, French consumer spending and 2nd quarter GDP numbers are due out along with German unemployment data. Expect the GDP and unemployment figures to be of greater influence.
On Wednesday, German retail sales and Spanish and Italian manufacturing PMIs are due out. Finalized numbers for France, Germany, and the Eurozone will also draw attention. Barring marked revisions to prelim numbers, Italy and the Eurozone’s PMIs and German retail sales will be key.
At the end of the week, service sector PMIs will also be in focus.
Finalized private sector PMIs for August are due out on Wednesday and Friday, and expect any revision to the services PMI to be key. A good week for both the pound and the euro, as EUR rose by 0.83% to $1.1795 and GBP ended the week up by 1.04% to $1.3764.
The Japanese Yen fell by 0.05% to ¥109.84 against the U.S Dollar. Retail sales figures for July gets things going on Monday while industrial production figures for July will also draw plenty of interest on Tuesday. Through the rest of the week, capital spending and finalized private sector PMIs will also be in focus for Japan.
Private sector PMIs for August will influence market risk sentiment through the week for China while NBS numbers due Tuesday are out ahead of the all-important Caixin Manufacturing PMI on Wednesday. At the end of the week, the Caixin Services PMI will also provide riskier assets with direction. The Chinese Yuan ended last week up by 0.45% to CNY6.4720 against the U.S Dollar.
Iran, China, and Russia remain areas of interest for the markets, particularly news updates from the Middle East. Monitoring what Capitol Hill states on the events in Afghanistan will bear on developments in the coming weeks as well.