Economic calendar: UK CPI data, advance GDP from EMU

Summary:

• UK CPI data could affect the pound after wage growth accelerated notably
• Preliminary GDP for Q2 from the Eurozone economy
• Swedish inflation could influence Riksbank’s rhetoric

8:00 am BST - Preliminary GDP from Czech Republic and Hungary for Q2

8:30 am BST - CPI from Sweden for July: There nothing surprising that the small Swedish economy is strongly dependent on what is happening in the Eurozone. Hence, taking into account that the ECB intends to ease monetary policy next month it is hard to imagine the Riksbank could pursue tighter financial conditions at the same time. However, this backdrop might change once inflation, especially demand-driven prices, starts speeding up more than expected. The consensus points to 1.5% YoY for headline and 1.8% for core prices growth. 

9:00 am BST - Preliminary GDP from Poland for Q2, CPI for July (final)

9:30 am BST - UK inflation for July: Wage growth in June accelerated more than expected, and along with lacklustre productivity growth it keeps exerting upward pressure on unit labour costs. That is what could push prices in the whole economy and ultimately convince the Bank of England to pull the trigger. The consensus points to 1.9% YoY and 1.8% YoY for headline and core inflation respectively. 

10:00 am BST - Preliminary GDP from EMU for Q2, employment data for Q2 (preliminary): The Eurozone economy is expected to have risen 0.2% in quarterly, seasonally adjusted terms in the three months through June. This looks like weakis growth but it does still look decent compared to a contraction faced by the German economy (GDP fell 0.1% QoQ at the corresponding period of time). Along with a preliminary GDP release market participants will be offered a preliminary reading on employment in the economy (keep an eye on what happened in the manufacturing sector).

1:30 pm BST - Export/import prices from the US for July

Central bankers’ speeches:

• 8:30 am BST - RBA’s Debelle