INFLATION DATA AND POLITICS SET THE TONE FOR FINANCIAL MARKETS
U.S DATA AND POWER POLITICS
The United States economy takes center stage this week with the release of the FOMC meeting minutes, and key inflation data for the month of September. This week's CPI and PPI inflation figures may prove pivotal for the U.S dollar, as financial markets price-in one more Federal Reserve rate hike this year.
After suffering its largest decline in a year against the U.S dollar last week, the British pound may again come under further pressure from Brexit negotiations, UK political in-fighting and worse than expected economic data. The euro also faces its own challenges, as the political climate in Spain worsens, as Catalonian's bid for independence remains unresolved and without a clear resolution in-sight.
Monday 9th October, Chinese PMI Services
Chinese financial markets will re-open after a one-week holiday, celebrating Golden Week Holiday. The Chinese PMI Services Index for the month of September is expected to remain above the 50, which shows continued economic expansion.
PMI Services provides the most up-to-date possible indication of the Chinese economy, and measures the private sector economy by tracking variables such as sales, employment, inventories and prices.
Tuesday 10th October, UK Manufacturing Production
The British pound may come under further pressure, as figures for the month of August are expected to show a decline in Manufacturing Production for the United Kingdom economy.
Manufacturing Production measures the change in the total inflation-adjusted value of output produced by UK manufacturers. Manufacturing accounts for approximately 80 percent of overall UK Industrial Production.
Wednesday 11th October, U.S FOMC Meeting Minutes
The U.S Federal Open Market Committee releases the Meeting Minutes from last month's policy meeting, which was held over two days, from September 19th-20th.
Investors will look for any clues inside of the FOMC Meeting Minutes, that indicate United States policy makers latest thoughts on the American economy, inflation and interest rates.
Thursday 12th October, United States PPI
U.S Producer Price Inflation during the month of September is expected to increase by 0.4 percent, outpacing the previous months figure of 0.2 percent.
The U.S Producer Price Index measures the change in the price of goods sold by U.S manufacturers. It is a leading indicator of consumer price inflation inside America, which accounts for the majority of overall inflation.
Friday 13th October, United States CPI
U.S Consumer price inflation is expected to rise 0.6 percent during the month of September, while the year-on-year comparison figure is expected to show an impressive 2.3 percent annual rise.
The Consumer Price Index measures the change in the price of U.S goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.