The coming week will offer plenty of macroeconomic releases, especially from the US and UK. We highlight the key reports in this calendar below. However, traders should pay attention to geopolitical developments that may dominate markets: panic in Turkey, sanctions on Russia and Iran, trade conflict in China - all of those can cause market turbulences.
Data from US: retail sales and industrial output (Wednesday), housing starts (Thursday), consumer confidence (Friday): The EURUSD slid below 1.15 on Friday but could the US dollar sustain those gains? Do notice that the latest streak of the US data was less then impressive: ISM indices declined, some inflation measures softened and wage growth stalled. Given the fact that the interest hike in September is a done deal for the markets, present data may have smaller impact than overall market sentiment (driven mostly by geopolitics) but any confirmation of a “soft path” in data could still be an important sign.
Data from UK: inflation and labour market (Wednesday), retail sales (Thursday): The Bank of England increased interest rates in August but it did little to help the pound. Traders are concerned that the data flow will not warrant more increases in a foreseeable future. Therefore the data will definitely be monitored. Especially the CPI figures are of the highest importance for the central bank and should be watched by traders.
Data from China: output, retail sales, investments (Tuesday): A recent weakness of the Chinese yuan had a broad impact on the markets. Antipodean currencies suffered and some commodities like copper declined. Traders will watch the Chinese reports for signs of further deterioration that could be a result of trade conflict with the US.
The USDJPY breaks below its crucial medium-term support as investors seeks safe havens to allocate their capital. Source: xStation5