Bank of England Inflation Weekly Report - 11-15/08/14

A quick reminder that last week, the ECB kept key interest rates unchanged, as the central bank’s chief Mario Draghi appeared satisfied with the Euro’s weakness against its peers. The ECB is walking a fine line between stimulating the economy; keeping the Euro at low levels to make European goods more affordable for export, while staving off deflation at the same time.
On Monday the 11th of August, the trading week starts with medium-impact events, mainly in Canada, which announces its Housing Starts performance for July on an annual basis at 12.15. The indicator was previously at 198.2 thousand.
Moving onto Tuesday the 12th, Germany releases its ZEW economic research indicator for August at 09.00 ZEW is a survey in which 350 analysts and economists give their feedback on the general state of the economy. The benchmark was previously at 61.8 and is expected to be lower at 57 this time around. The Eurozone’s ZEW survey for August is released at the same time, and was previously at 48.1.
The trading highlight of the day is at 23.30, when Japan releases its second quarter GDP results, reported on a quarterly basis. It was previously 1.6 percent, and is expected to have fallen to MINUS 1.8 percent.
On Wednesday the 13th, all eyes are on Bank of England’s quarterly inflation report and Mark Carney’s speech at 9.30. This is a high-impact event, which has knock-on effects on Sterling crosses. This report is considered to be very important, as the UK is recovering from recession and the Bank of England is looking for the right time to raise interest rates, which are currently at record lows.
Later in the day, at 12.30, the US releases figures for June Retail Sales at 12.30, reported on a monthly basis. Previously, retail sales rose by 0.2 percent, and analysts expect a rise of 0.3 percent this time around.
On Thursday August 14th, Germany’s second quarter GDP is released at 06.00. Reported on an annual basis, GDP growth was previously at 2.5 percent. Then, at 09.00, the Eurozone reports its July CPI data on an annual basis. Equally important is the Eurozone’s quarterly-basis GDP report for Q2, previously at the level of 0.9 percent, and expected at 0.7 percent.
Finally, on Friday August 15th, it’s a public holiday in many EU countries marking Assumption Day. There is a high-impact event in the UK at 08.30, when the government releases its second-quarter GDP results on an annual and quarterly basis. Previously, the UK’s GDP rose 3.1 percent on an annual basis, and 0.8 percent on a quarterly basis.