FXStreet (Guatemala) - Analysts at Rabobank explain that the day ahead comes with a number of important data release in European and US markets.
“The UK releases Nationwide house prices, expected +0.1% MoM and 10.2% YoY, suggesting momentum is ebbing (and ahead of the election, which is inconvenient timing for the government, especially given the defection of one of its MPs to UKIP yesterday)”.
“German retail sales are also released, and are seen +0.1% MoM and +1.5% YoY: that’s not much of a performance from Europe’s economic engine (though when you see Greek retail sales were -8.5% YoY in May years into its crisis you start to realise that this is all relative)”.
“We then get Eurozone CPI for August, where consensus is +0.3% YoY headline and +0.8% core. To say that any downside surprises would put more market pressure on the ECB is an understatement”.
“In India we get Q2 GDP, seen bouncing from 4.6% to 5.5% YoY: that’s not a reflection on Modi-nomics yet, but will be a welcome sign of an upswing that can hopefully help boost ‘animal spirits’”.
“In the US we see personal income and spending for July; income is seen +0.3% MoM and spending +0.2%; theChicago PMI is also out and after the sharp fall last month is expected to rebound back to 56.5; and final Michigan confidence (consensus: 80) rounds out the week”.
“Overall, the market has to try to sort out what tells us where we’ve been and what shows us where we might be going. (Now I’m suddenly humming Whitesnake – it must be HappyFriday!”.