The economic calendar for the coming week is pretty busy, with several countries announcing key economic indicators, such us:
📌 GDP MoM and 3-month average (U.K.)
📌 Unemployment Rate (U.K. and Australia)
📌 Interest Rate Decision (U.K.) and more!
Accordingly, we should continue to keep a close eye on the fundamental factors that can affect the markets 👀
👇 Let's take a look at this week's economic events in more detail
The UK monthly GDP – Monday, September, 12th
The UK monthly GDP will be released at 9:00 on Monday, September 12.
Asset(s) Affected: GBP and FTSE100 🇬🇧
Why is this event important?
Monthly Gross domestic product (GDP) estimates are the main measure of UK economic growth, based on the value of goods and services produced during a given period.
It is very essential to monitor the monthly GDP of the UK, as last month's figure was worse than forecasts.
A high GDP reflects larger production rates, an indication of greater demand for that country's products. An increase in demand for a country's goods and services often translates into increased demand for the country's currency.
Accordingly, monthly GDP in the negative zone will increase pressure on the GBP and prevent it from moving higher against the US dollar and other currencies.
The US CPI – Tuesday, September, 13th
On Tuesday, September 13, the US CPI will be released at 15:30 GMT+3.
Asset(s) Affected: US Dollar and US Stocks 🇺🇸
Why is this event important?
Consumers finally got a little relief on the inflation front in July because of a significant decline in gasoline prices. The United States Consumer Price Index (CPI) has remained high for the past two months, but its rise has been stalled by a key rate hike and other factors.
CPI is a broad measure of inflation, so when the CPI changes, central bank monetary policy may follow suit. Higher inflation in the form of a higher CPI naturally makes an individual unit of currency worth less, as there are more units of that currency needed to buy a given item.
Should the CPI number beat market expectations, the dollar typically might see a boost against other currencies 📈
However, should these readings fall short of consensus expectations, the currency might fall relative to other pairings 📉
The UK CPI – Wednesday, September, 14th
On Wednesday, September 14, the UK CPI will be released at 9:00 GMT+3.
Asset(s) Affected: GBP and FTSE100 🇬🇧
Why is this event important?
The [UK’s Consumer Price Index (CPI)](https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/july2022#:~:text=Image%20.csv%20.xls-,The%20Consumer%20Prices%20Index%20including%20owner%20occupiers%27%20housing%20costs%20(CPIH,rate%20has%20since%20risen%20markedly.) is the official measure of inflation of consumer prices of the United Kingdom. It is also called the Harmonized Index of Consumer Prices (HICP). The CPI calculates the average price increase as a percentage for a basket of 700 different goods and services. Around the middle of each month, it collects information on prices of these commodities from 120,000 different retailing outlets.
If the Consumer Price Index (CPI) continues to rise, it will put strong pressure on the GBP and strengthen actions of the regulator. If inflation starts to decline, it is a positive signal for the British pound and the U.K. economy as a whole.
The US PPI – Wednesday, September, 14th
The US PPI will be released on Wednesday, September 14 at 15:30 GMT+3.
Asset(s) Affected: US Dollar and US Stocks 🇺🇸
Why is this event important?
The US Producer Price Index (PPI) is a family of indexes that measures the average change over time in selling prices received by domestic producers of goods and services. PPIs measure price change from the perspective of the seller.
The core PPI can serve multiple roles in improving investment-making decisions because it can serve as a leading indicator for CPI.
An increase in the PPI usually means that inflation is on the way. Producers eventually will try to pass their cost increases on to consumers. If the Producer Price Index (PPI) continues to rise, it will put strong pressure on the USD and strengthen actions of the regulator. If inflation starts to decline, it is a positive signal for the US dollar and the US economy as a whole.
The Australian Unemployment Rate and Employment Change – Thursday, September, 15th
The Australian Unemployment Rate and Employment Change are taking place on Thursday, September 15th at 04:30 GMT +3.
Asset(s) Affected: AUD and AUS200 🇦🇺
Why is this event important?
In Australia, employment change refers to the absolute change in the number of persons who work for pay or profit, or perform unpaid family work. Estimates include both full-time and part-time employment.
Creating jobs helps the economy by GDP. When an individual is employed, they are paid by their employer. This results in them having money to spend on food, clothing, entertainment, and in a variety of other areas. The more an individual spends, the more that demand increases.
As a rule, an increase in employment has a positive effect on the Australian stock market, while unemployment leads to a decrease in the value of Australian companies' shares.
The US Retail Sales and Core Retail Sales – Thursday, September, 15th
The US Retail Sales and Core Retail Sales will be released on Thursday, September 15 at 15:30 GMT+3.
Asset(s) Affected: USD and US Stocks 🇺🇸
Why is this event important?
The term core retail sales refers to an economic indicator that tracks the month-to-month increase or decrease in U.S. consumer spending in most retail categories. Investors and economists watch the numbers to see whether retail sales are going up or going down, and by how much.
The percentage increase or decrease from month to month gives a good indication of whether the economy is contracting or expanding, and how fast.
The decline in consumer activity negatively affects the stock market and the currency of the country, while growth provokes the activation of investors and the increase in the value of many shares.
The Empire State Manufacturing Index – Thursday, September, 15th
The Empire State Manufacturing Index will be released on Thursday, September 15 at 17:00 GMT+3.
Asset(s) Affected: USD and US Stocks 🇺🇸
Why is this event important?
The Empire State Manufacturing Index (ESMI) is a survey given out by the Federal Reserve Bank of New York to manufacturing companies within the state of New York. It measures how the people who run these companies feel towards the economy.
Participants report the change in 11 indicators including level of general business activity, new orders, shipments, inventories, number of employees, delivery time, capital expenditure from the previous month and the likely direction of these indicators in six months. A reading above 0 indicates manufacturing activity is expanding, below 0 is contracting.
The decline in manufacturing activity negatively affects the stock market and the currency of the country, while the growth provokes the activation of investors and the increase in the value of many shares.
That's it for this week! 👋
