In the week ahead, investors will be looking ahead a key US economic data to further gauge the strength of the US economy and the need for stimulus. Policy meetings by the Reserve Bank of Australia and the Bank of Japan will also be in focus.
Monday, August 5
Australia is to produce official data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity. The euro zone is also to release official data on retail sales, while Spain and Italy are to produce data on service sector activity. The UK is to release data on service sector activity, a leading economic indicator. In the US, the Institute of Supply Management is to produce a report on service sector activity, a leading economic indicator. Markets in Canada are to remain closed for a national holiday.
Tuesday, August 6
The Reserve Bank of Australia is to announce its benchmark interest rate. The rate announcement is to be accompanied by the bank’s rate statement, which contains important insights into current and future economic conditions from the bank’s perspective. The Pacific nation will also release a report on the trade balance. In the euro zone, Germany is to produce official data on factory orders, a leading indicator of production, while Italy is to release preliminary data on second quarter gross domestic product, the broadest indicator of economic activity and the leading measure of the economy’s health. The UK is to release official data on manufacturing production. Canada is to produce government data on the trade balance, the difference in value between imports and exports. The US is also to release a report on the trade balance.
Wednesday, August 7
New Zealand is to release government data on the change in the number of people employed and the unemployment rate, a leading economic indicator. The Swiss National Bank is to release data on foreign currency reserves, which offers an insight into the scale of the bank’s currency market operations. Switzerland is also to release a report on consumer inflation. The Bank of England is to release its quarterly inflation report. BoE Governor Mark Carney is to speak at a press conference following the release of the report. In the euro zone, Germany is to produce official data on industrial production, a leading indicator of economic health. Later Wednesday, Canada is to publish government data on building permits, a leading indicator of future construction activity, as well as the Ivey PMI. The US is to produce weekly data on crude oil supplies.
Thursday, August 8
The BoJ is to announce its benchmark interest rate. The announcement is to be accompanied by the bank’s monetary policy statement, which contains important insights into the economic outlook. The BoJ is to hold a press conference after the rate announcement. Japan is also due to release official data on the current account. Australia is to produce official data on the change in the number of people unemployed and the unemployment rate. China is to release government data on the trade balance. In the euro zone, Germany is to produce official data on the trade balance. The ECB is to publish its monthly bulletin, which outlines the bank’s economic outlook. The US is to release the weekly government report on initial jobless claims, a leading economic indicator.
Friday, August 9
The RBA is to publish its monetary policy statement, which outlines the factors that influenced the bank’s rate decision. China is to produce official data on consumer price inflation, which accounts for the majority of overall inflation. The Asian nation is also to release government data on producer price inflation and industrial production. In the euro zone, France is to release official data on industrial production. The UK is to release government data on the trade balance. Canada is to round up the week with data on the change in the number of people employed and the unemployment rate, a leading economic indicator.