Inflation In Eurozone Higher Than Forecast | Retail Sales Reports

US Inflation Forecasted at 3.3%, UK GDP Projections at 0%, Fed Member Harker's Views on Rates

We start the beginning of the new week with data on inflation in the European Union. Apart from important data from Strego Kontunet, the market does not expect important data from America.

Japan Industrial Production

In Japan, despite the positive results in August, Industrial Production fell below zero to -1.6%. The decline was expected but not that low. The result was forecast at -1.0%.

Such a situation means weakening demand in this sector. For investors, this means a significant slowdown and is not beneficial for the image of the Japanese currency or its entire economy.

Japan Retail Sales

Another important report for the Japanese economy is the report on retail sales. The result turned out to be positive. The 4.1% level was expected to hold this time as well, but the reading was higher. The current level of retail sales in Japan is 4.5%.

Since the fall in July, sales in Japan started a new pattern trend, which, as we can observe, continues. Retail sales are seen as a stand-in for consumer spending and its growth can be considered positive for the development of the Japanese economy.

Inflation In Eurozone Higher Than Forecast | Retail Sales Reports - 1

Source: investing.com

Austrailan Retail Sales

Australia also shared the results on retail sales. The result was neither positive nor negative. The positive fact is that it has met expectations and has not fallen. This is the third reading in a row when the retail sales level is 0.6%. According to this indicator, the Australian economy is stagnating.

China Manufacturing PMI

The China Manufacturing Purchasing Managers Index fell below 50 again. The current reading shows that the index reached the level of 49.2 against the previous one (50.1), it is a negative reading. Also, this reading did not meet the forecast level (50.0)

The China Non-Manufacturing Purchasing Managers Index (PMI) also fell. The spatula trend continues. The gauge has dropped from level 50.6 to level 48.7.

The current value and movements of the PMI and its components can provide useful information for business decision makers, market analysts and investors .We can expect that poor performance in both sectors will have negative effects on market decisions.

Important economic data from Europe

The core CPI reached the level of 5.0% against the forecasted 4.8%. On the other hand, the overall CPI reached the level of 10.7% and was higher by 0.5% than forecasted. As we can see, the situation in the euro zone has not changed despite the actions of the ECB.

Read more: Forecasts Of The Situation In The Eurozone Are Not Very Good| FXMAG.COM

ECB’s member is set to speak

After today's important economic data from the Eurozone, a speech by Philip R. Lane, member of the Executive Board of the European Central Bank will take place at 16:00 CET.

The speech that will take place after important reports will be helpful for investors in taking further decisions and thus contain indications on the future possible direction of monetary policy.

Summary

Despite the fact that only the European Union released data important for the markets, during the week there will be more reports that will have a significant impact on the market situation.

This week we should focus on next decisions of central banks regarding interest rates (Fed, RBA, Bank Of England).

  • 0:50 CET Japan Industrial Production (MoM) (Sep)
  • 0:50 CET Japan Retail Sales (YoY) (Sep)
  • 1:30 CET Austrailan Retail Sales (MoM) (Sep)
  • 2:30 CET China Manufacturing PMI (Oct)
  • 11:00 CET EU CPI
  • 11:00 CET EU GDP
  • 11:00 CET EU Core CPI
  • 12:25 CET BCB Focus Market Readout
  • 16:00 CET ECB's Lane Speaks

Source: https://www.investing.com/economic-calendar/

US Inflation Forecasted at 3.3%, UK GDP Projections at 0%, Fed Member Harker's Views on Rates

Kamila Szypuła

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Kamila has a bachelors degree in economics and a master's degree in finance and accounting, specializing in banking and financial consulting

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