Summary:
- US inflation for July to be the most important print for today
- ZEW index from Germany is expected show gloomy numbers again
- Jobs report from the British economy
8:00 am BST - Spanish inflation for July (final)
8:00 am BST - Hungarian industrial output for June
9:00 am BST - Current account balance from Czech Republic for June
9:30 am BST - UK jobs report for June: The British pound has seen a deep pullback recently caused mainly from rising concerns regarding a possible exit from the European Union without any agreement (a hard line taken by PM Boris Johnson as he has promised to leave the EU at any price on October 31). Taking into account the latest BoE’s statement one may arrive at a conclusion that the BoE would have raised rates already some time ago if no Brexit-related risks had existed. Anyway, the consensus indicates that average weekly earnings (including bonuses) rose to 3.7% from 3.4% in annual terms, employment grew 60k in three months through June while the unemployment rate stayed at 3.8%.
10:00 am BST - German ZEW index for August: Soft indicators in Germany, but in other European economies as well, have collapsed of late on the back of rising recession risks. Hence, the index for August is expected to have fallen to -28 from -24.5.
1:00 pm BST - Current account balance from Poland for June
1:30 pm BST - US inflation for July: The Federal Reserve cut rates last month and did not rule out possible further cuts in the future (though, it did not point to them explicitly either). One may imagine that stronger inflation readings could sow a grain of confusion among FOMC members whether the Fed is right to cut rates. Either way, headline CPI is expected to have accelerated to 1.7% from 1.6% in annual terms, whereas core CPI is forecast to have remained at 2.1% YoY.
5:00 pm BST - A session in the Italian parliament when a date regarding the confidence vote could be set
