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GEOPOLITICAL NEWS: European Economic Reporting - The week ahead - Analysis

GEOPOLITICAL NEWS: European Economic Reporting - The week ahead - Analysis
By Iain Fraser
Málaga Press & Technology Centre

It’s a busy week ahead on the European economic data front. In the 1st half of the week, Eurozone industrial production, wage growth, and economic sentiment are due out together with Germany’s ZEW economic sentiment figures which are expected to be a key factor on Tuesday. On Wednesday, trade data for the Eurozone is due out. Barring particularly dire numbers, the trade data should have a min or impact on the EUR. Later this week, the finalised August inflation figures for European member states and the Eurozone are also due. Following sensitivity to the preliminary figures, expect the EUR to be highly sensitive to any revisions during the week.

For the UK and Sterling [GBP] It’s a particularly busy week ahead on the economic calendar. In the 1st half of the week earnings and employment figures are due out and I expect the unemployment rate and claimant count figures to have the greatest impact. On Wednesday, August inflation figures are also due out. The Pound will likely be sensitive to any deflationary pressure build ahead of the BoE [Bank of England] decision on Thursday. On Thursday, the BoE is in action. While the markets are expecting policy to remain unchanged, there had been some recent dovish chatter. Expect any dissent to influence the Pound.

The market focus will then shift to August’s retail sales figures due out on Friday. Following the BoEs gloomy outlook on the economy, weak numbers would weigh heavily, assuming the BoE stands pat on policy.

Geopolitical Journalist & Risk Analyst based in Málaga City, Spain. Currently interim CIO at Argus News Group and Consultant Editor at GEOPoliticalMatters.com as well as being an authority contributor to various websites and magazines across the Defence, Cybercrime & European Political sectors. More at https://iainfraserjournalist.blogspot.com or on LinkedIn

 

Image Credit: Kai_Pilger


 



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