Economic calendar: US decision on Huawei

Summary

- Second release of European CPI for July
- United States to announce decision on Huawei today
- Busy week ahead with central banks in the spotlight

Beginning of the week seems light in terms of the macroeconomic releases as there are barely any scheduled for Monday. Eurostat will release July’s CPI print for euro area at 10:00 am BST. Nevertheless, it will be the second release for July therefore the data should not deviate much from the initial readings. Headline gauge is expected to come in at 1.1% YoY while the core measure should confirm 0.9% YoY print signalled by the preliminary data. Apart from that, Chilean GDP report for the second quarter of 2019 will be released at 1:30 pm BST. It is expected that the Chilean economy has grown 1.8% YoY in the April-June period. The reading may spur additional volatility on the Chilean peso market (USDCLP). Additionally, the US waiver for Huawei expires today therefore a decision on extension is expected to be announced today in the afternoon. In case it is granted, appetite for risk may increase.

However, one should not get distracted by the lack of key readings scheduled for Monday. Some key events will take place in the remaining part of the week including release of FOMC (Wednesday) and ECB minutes (Thursday) as well as the German manufacturing PMI print for August (Thursday).