This week Sterling will see manufacturing and industrial data at the end of the week, which could cause volatility. The UK has been under pressure from the Brexit fallout, even though the economy has done substantially better than expected. If there was to be a slip in data, it would certainly do little to ease confidence in the UK’s economy.
The National Institute of Economic and Social Research will release their GDP estimate. The release comes a month before the official announcement, but of course with the recent vote there will be increased anticipation.
There will be releases for the Markit Manufacturing Purchasing Managers Index which will provide a look at the business sentiment for the Eurozone. There has been little change to the EU since the Brexit announcement and this is likely to continue into next week.
The Producer Price Index indicates the changes in the cost of making goods. This will be released in the middle of next week and is an indicator of the level of inflation. A positive reading is considered as indication there is an increase in inflation.
The ECB Monetary Policy Accounts will be released on Thursday; these provide an insight into any economic or monetary policy developments. This release will be watched with extra scrutiny considering the events unfolding with Germany’s biggest bank, Deutsche Bank.
The USD will have a busy week of data as the US Election will only be 4 weeks away come the end of the week. The big question this week will be the 2nd debate at the end of the week as to whether or not we have further insight as to how the vote will play out.
There will be manufacturing PMI, unemployment figures and the very significant Non-Farm Payrolls. The second major question in the states is when will there be a further rate hike. The next opportunity could be the start of November; however a change seems unlikely just before the vote. The expectation is that if Clinton wins we could see a rate hike as early as December, which could cause major strength for the USD and significant weakening for many major currencies.