Economic calendar: US GDP report in the spotlight

Summary

- Second release of the US GDP data for the second quarter
- German inflation expected to slow
- Bank of Mexico to release minutes in the afternoon

8:55 am BST - Germany, the unemployment rate for August. The German economy is said to be on the verge of falling into recession. Such a view could be confirmed by deterioration in the labour market data. However, when it comes to Germany, one should be wary that the country barely saw an increase in the unemployment rate in the aftermath of the financial crisis. Market consensus expected the German unemployment rate to stay unchanged at 5% in August.

1:00 pm BST - Germany, CPI inflation for August. ECB is said to have been preparing new measures aimed at stimulating the economy. As the decision seems to be made already, incoming inflation data may not have much of an impact on it. Nevertheless, significant deceleration of price growth could call for bigger stimulus package. German headline CPI is expected to slow from 1.7% to 1.5%. Earlier, data from Belgium (12:00 pm BST) and Spain (8:00 pm BST) will be released.

1:30 pm BST - US, GDP report for Q2. Second release of the US GDP for April-June period is undoubtedly the most interesting reading scheduled for today. Revised data is usually more detailed one and will more accurately show how the US economy copes amid trade conflict with China. GDP growth is expected to be revised lower from 2.1% QoQ, hinted by the first release, to 2% QoQ. 

3:00 pm BST - Bank of Mexico minutes.

3:00 pm BST - US, pending home sales for July. New homes sales data released at the end of the previous week showed a major monthly slump. On the other hand, building permits for July came in much higher than expected while existing home sales matched forecasts. Market expects pending home sales data to show a 0.1% MoM.