Economic calendar: Focus on survey data and bankers' speeches

Summary:

• Survey data from UK, US and Canada

• Manufacturing ISM expected to decline for another month

• UK central bankers to testify before Parliament’s Treasury Committee

Tuesday is set to be much more interesting than Monday as traders from Canada and the US will return to the markets. Calendar also looks more interesting as we will get surveyed data from three major economies. Apart from that, AUD traders may want to keep cautious at 10:30 am BST as RBA Governor Lowe will speak, just 5 hours after Bank’s meeting. Moreover, the UK central bankers (Carney, Haldane and Tenreyro) will testify before Parliament’s Treasury Committee on economic and inflation outlooks at 1:15 pm BST.

9:30 am BST - UK, Construction PMI for August. The UK manufacturing PMI released yesterday disappointed investors as it not only missed expectations but also slid to the lowest level since July 2016. The manufacturing readings have been deteriorating late-2017 and if construction and services gauges join this trend the picture of the UK economy may become gloomy. Economists surveyed by Bloomberg expect construction PMI to decline from 55.8 pts to 54.9 pts. The reading for services sector is scheduled for release tomorrow at 9:30 am BST.

2:30 pm BST - Canada, Manufacturing PMI for August. While manufacturing PMI from the UK has been continuously disappointing investors as of late the situation looks much different in Canada. After a minor pullback in July economists suggest that August’s reading may climb back to the 57.1 pts, the highest level of this year. In case we are offered a beat the gauge would move to the highest levels since at least late-2012. The recent NAFTA case probably won’t be reflected in today’s data but in case Canada will be omitted in the deal we may witness a deterioration in months to come. Keep in mind that Bank of Canada will announce its interest rate decision tomorrow.

3:00 pm BST - US, Manufacturing ISM for August. While survey data from Europe has been weak for quite a long time already the US counterparts kept climbing higher. However, we were offered a lacklustre reading in July that could be seen as worrying if we combine it with other readings released at the time. In case this will extended over August some may question ability of the US economy to keep with the current pace of growth. The manufacturing ISM is expected to decline from 58.1 pts to 57.6 pts. The non-manufacturing ISM will be released on Thursday.

Central bank speakers scheduled for today:

• 10:30 am BST - RBA Governor Lowe

• 1:15 pm BST - BoE’s Carney, Haldane and Tenreyro

GBPUSD kept moving lower since mid-April. The pair tried to bounce higher recently but it reversed a notch below the resistance zone ranging 1.3050-1.3130. Source: xStation5