INVESTORS LOOK TO CHINESE ECONOMIC DATA AND THE NEXT BIG MOVE IN THE DOLLAR
CHINESE DATA AND THE GREENBACK
This week we see the Chinese economy taking center stage, as the National Bureau of Statistics of China releases a slew of high-impact economic data. Investors will look to the release of Chinese inflation, retail sales, industrial production and key third fiscal quarter GDP figures from the world's second largest economy.
We also see the greenback back in focus, after the U.S dollar index gave back a significant portion of its recent trading gains made in early October. Traders will also look to the release of high-impact data from the Australian economy and key U.S housing data. The United Kingdom and eurozone also release CPI data for the month of September, ahead of upcoming ECB and BOE policy meetings.
Monday 16th October, Chinese CPI Data
The Chinese economy releases September Consumer Price Index data, which measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation inside the Chinese economy.
The month-on-month CPI figure is expected to expand by 0.4 percent, which is in-line with the previous months figure. The annual figure is expected at 1.6 percent, which is slightly down from 1.8 percent during the same period last year.
Tuesday 17th October, United Kingdom CPI Data
The United Kingdom releases key inflation data for the month of September, at a time when speculation is mounting that the Bank of England will start to hike interest rates this month, or the November BOE policy meeting.
Inflation is expected to rise 0.3 percent in September which is down sharply from last month's 0.6 percent. The year-on-year inflation figure is expected to climb towards 3 percent, which is better than the 2.9 percent seen at the same time last year.
Wednesday 18th October, United States Building Permits
The United States economy releases key Building Permits data for September, which measures the change in the number of new building permits issued by the government.
Building permits are a key indicator of demand in the U.S housing market, with this month's figure likely to be volatile due to the disastrous weather conditions seen in the southern-half of America.
Thursday 19th October, Chinese Third Quarter GDP
The Chinese economy releases third fiscal quarter gross domestic product figures, and are expected to show continued growth in China, with the PBOC on-target for above six percent GDP growth.
The third fiscal quarter is forecast to have expanded by 1.7 percent, while the annual figure looks set to remain on-track, showing strong growth, of 6.8 percent.
Friday 20th October, U.S FED Chair Janet Yellen Speech
Federal Reserve Chair Janet Yellen is set to deliver a lecture on monetary policy at the NEC Herbert Stein Memorial and Annual Members Dinner.
Finacial markets will listen to Janet Yellen's speech, as it may offer further clues on her most recent thinking about the state of the U.S economy, inflation and upcoming policy changes from the Federal Reserve.