Economic events to monitor in week 38

Let's break down the main events and what to watch out for in the trading week ahead.

Tuesday, September 17th, 2024

12:45 PM GMT - UK Inflation Rate YoY (Aug) Assets to Watch: GBP/USD, FTSE 100 The UK's inflation rate for August is expected to have slightly cooled from 6.8% in July but is likely to stay above the Bank of England's 2% target. This could increase pressure on the BoE to raise interest rates, which may impact the pound and UK stocks.

Wednesday, September 18th, 2024

07:00 AM GMT - UK Average Earnings Index 3m/y (Jul) Assets to Watch: GBP/USD, FTSE 100 Wage growth in the UK is a key concern for the BoE due to its impact on inflation. The July report might show a slight moderation in wage growth, which could ease some concerns and affect the pound's movement.

07:00 AM GMT - UK Claimant Count Change (Aug) Assets to Watch: GBP/USD, FTSE 100 An expected increase in the number of people claiming unemployment benefits could raise concerns about the UK labor market's health, possibly weighing on the pound.

12:30 PM GMT - US Building Permits (MoM) (Aug) Assets to Watch: USD/JPY, US Housing Sector ETFs A decline in building permits is anticipated, reflecting challenges in the housing market amid rising interest rates and affordability issues.

12:30 PM GMT - US Housing Starts (MoM) (Aug) Assets to Watch: USD/JPY, US Housing Sector ETFs Housing starts are projected to decrease, which could dampen sentiment in the US housing sector and impact the dollar.

Thursday, September 19th, 2024

01:30 AM GMT - Australia Employment Change (Aug) Assets to Watch: AUD/USD, Australian Stock Market Index August's employment report could show modest job growth, with an unchanged unemployment rate. This data may influence the Australian dollar depending on the results.

08:30 AM GMT - US Philadelphia Fed Manufacturing Index (Sep) Assets to Watch: USD/JPY, US Manufacturing Sector ETFs A slight improvement in this index might indicate a rebound in manufacturing activity, although ongoing challenges in the sector persist.

12:30 PM GMT - US Initial Jobless Claims Assets to Watch: USD/JPY, US Stock Indices An expected increase in jobless claims for the week could raise concerns about the labor market's health, possibly influencing the dollar.

14:00 GMT - US Existing Home Sales (MoM) (Aug) Assets to Watch: USD/JPY, US Housing Sector ETFs A decline in existing home sales is anticipated, continuing the challenges faced by the housing market.

Friday, September 20th, 2024

08:30 AM GMT - Canada Retail Sales (MoM) (Jul) Assets to Watch: USD/CAD, Canadian Stock Market Index A rebound in July’s retail sales data will provide insights into consumer spending and the overall health of the Canadian economy.

Conclusion

This week presents numerous opportunities as well as risks across different asset classes. Traders should stay informed and manage risk carefully while navigating these market-moving events. Stay focused on key indicators, and be ready to adapt to market conditions.