Eurozone inflation data in focus amid a busier end to the week
Happy Friday, everyone! Hope you're all doing well as we look to get things going in the session ahead. The dollar is holding firmer once again in trading today as markets continue to stay more optimistic/hopeful after yesterday's turnaround.
Equities are holding higher alongside bond yields but that hasn't translated much into risk moves in currencies. The greenback is arguably the only notable mover so far today.
Looking ahead, we'll have quite a number of data points to move things along in the European morning but the key driver remains the risk mood as well as month-end flows.
0600 GMT - Germany July retail sales data
Prior release can be found here. A look at consumption activity, which remains one of the few "bright" spots in the German economy. A minor data point.
0600 GMT - UK August Nationwide house prices data
Prior release can be found here. A general indication of housing market sentiment in the UK. Not a major release by any means.
0645 GMT - France August preliminary CPI figures
Prior report can be found here. The thing to watch out here is further weakness in inflationary pressures after what we saw from Germany yesterday. That will factor into the overall expectations for the Eurozone report later as well as the inflation outlook.
0700 GMT - Switzerland August KOF leading indicator index
Prior release can be found here. The data here measures the future trends of overall economic activity in the Swiss economy. Low-tier data.
0830 GMT - UK July mortgage approvals, credit data
Prior release can be found here. An indication of credit conditions in the UK economy, which has been waning in light of ongoing Brexit uncertainty. A minor data point.
0900 GMT - Eurozone July unemployment rate
Prior release can be found here. A glimpse of labour market conditions in the euro area, which has continued to tighten over the past six years. With Germany's labour market looking a bit shaky, this may be a spot to watch in the coming months.
0900 GMT - Eurozone August preliminary CPI figures
Prior report can be found here. Expectation is for headline inflation to slow but for the core reading to remain unchanged (+1.0% y/y) relative to July. If that is the case, it may put a bit of pressure on the ECB but at least more steady core inflationary pressures will alleviate any worries about a major deterioration in the inflation outlook.
0900 GMT - Italy August preliminary CPI figures
Prior report can be found here. As this is released at the same time as the Eurozone figures, it won't be of much significance but it does feed into the overall inflation outlook.
1000 GMT - Italy Q2 final GDP figures
The preliminary report can be found here. The only thing to watch out for here is if we'll see a potential revision in which the Italian economy is seen contracting in Q2. Otherwise, it'll just reaffirm the story of stagnant growth and a flat economy in Italy since last year.
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading!
