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By: Andria Pichidi
- Services and Manufacturing PMI (EUR, GMT 07:30-08:00) – Aug manufacturing PMI confirmed at 47.0, vs 46.5 in July, Services PMI revised up to 53.5 from 53.4. This picture is likely to be seen again in the preliminary readings for September, as Manufacturing PMI has been forecast at 47.5, still below neutral. Meanwhile Services PMI is expected to fall to 53.3.
- Services and Manufacturing PMI (USD, GMT 13:45) – Preliminary Manufacturing are expected to slip in September, to 50.1 from 50.3, while Services PMIs are likely to fall below 50, to 49.6, indicating a potential recession in the sector that has been hit by global trade tensions.
Tuesday – 24 September 2019
- German IFO (EUR, GMT 08:00) – German IFO business confidence fell further in August and more than anticipated, with the headline number now at the lowest level since Nov 2012. In September, the overall business climate reading is seen slightly higher at 95.1 from 94.3. So far the sector breakdown of the IFO still shows that optimists outnumber pessimists in both services and construction, but with the trade reading now also in negative territory and services confidence especially falling sharply in August, the balance of risks is clearly tilted to the downside.
- CB Consumer Confidence (USD, GMT 14:00) – The Consumer Confidence is expected to ease to 134.0 in September from 135.1 in August and an 8-month high of 135.8 in July. A drop-back is expected in the current conditions reading to 173.0 from a 19-year high of 177.2 in August. The jobs strength diffusion index is poised for a drop-back from a remarkably lofty 19-year high in August of 39.4. Overall, confidence measures remain historically high.
- BoJ Minutes (JPY, GMT 23:50) – The BoJ Minutes are expected to shed some light regarding whether Japanese policymakers are willing to consider rate cuts in the coming months.
Wednesday – 25 September 2019
- Interest Rate Decision and Monetary Policy Statement (NZD, GMT 02:00) – The RBNZ cut rates by an unexpectedly aggressive 50 bps to a record low 1.00% in August. Governor Orr said negative rates may be needed to stimulate the economy, keeping the door wide open to further aggressive easing measures. The RBNZ is largely anticipated to keep rates on hold at 1.00%.
Thursday – 26 September 2019
- US Gross Domestic Product (USD, GMT 12:30) – The final Q2 GDP growth is expected to be confirmed at 2.0% annualized, with a $6 bln hike in public construction that accompanies boosts of $2 bln for consumption and $1 bln each for intellectual property investment and exports. We expect a -$2 bln revision for nonresidential investment and a -$1 bln revision to residential construction, leaving a net $7 bln upward GDP revision.
- Tokyo CPI and Production Data (JPY, GMT 23:30) – The country’s main leading indicator of inflation is expected to have rise to 0.8% y/y in September from 0.6% last month, and to slip to 0.5% y/y from 0.7% in the CPI ex Fresh Food reading.
Friday – 27 September 2019
- Personal Consumption Expenditures Prices (USD, GMT 12:30) – A 0.5% gain is anticipated in personal income in August after a 0.1% increase in July, alongside a 0.2% rise in August consumption that followed a big 0.6% July gain.
Durable Goods (USD, GMT 12:30) – Durable goods orders are expected to fall -1.6% in August, after gains of 2.0% in July and 1.8% in June, thanks to a -5.0% transportation orders drop after two monthly gains. Boeing orders dropped back to just 6 from 31 in July, with continued weakness due to the hit from problems with the Boeing 737 Max that has prompted buyers to delay new orders.
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