Add a header to begin generating the table of contents

    News of Wednesday November 16

    Wage Price Index AUD:The Wage Price Index released by the Australian Bureau of Statistics is an indicator of labor cost inflation and of the tightness of labor markets. The Reserve Bank of Australia pays close attention to it when setting interest rates. A high reading is positive (or bullish) for the AUD, while a low reading is seen as negative (or bearish).

    CPI GBP: The Bank of England is tasked with keeping inflation. An increase in inflation implies a quicker and sooner increase of interest rates or the reduction of bond-buying by the BOE, which means squeezing the supply of pounds. Recent reports suggest the Treasury will rely more on spending than taxes to do the heavy lifting. But given the real-term cuts (in some cases sizable) already facing certain government departments, it may be that this means more noticeable cuts to investment spending. October’s inflation data is likely to mark the peak in UK CPI. This data will include the latest rise in electricity/gas prices, but given they’re now being fixed by the government until at least April, their contribution has probably peaked. Still, headline inflation is unlikely to slip back into single digits until March/April next year.

    ECB Financial Stability Review EUR: It’s an assessment of conditions in the financial system and potential risks to financial stability – the evidence on strains and imbalances can provide insight into the future of monetary policy.

    CPI CAD: The Consumer Price Index (CPI) released by the Statistics Canada is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. The purchase power of CAD is dragged down by inflation. The Bank of Canada aims at an inflation range (1%-3%). Generally speaking, a high reading is seen as anticipatory of a rate hike and is positive (or bullish) for the CAD.

    Retail Sales USD: Dollar bulls suffered their biggest setback in more than six years this week after CPI inflation unexpectedly eased to below 8.0% y/y in October. A 50-basis-point rate hike by the Fed in December now seems more likely than a 75-bps one, but there could be some support for the US currency next week from the latest retail sales numbers on Wednesday. Retail sales are forecast to have bounced back by 0.8% month-on-month in October after being flat in September. However, upbeat consumer data alone might not be enough to bolster the dollar. It’s unlikely that the other releases, which include producer prices on Tuesday, industrial production on Wednesday, and housing numbers on Thursday and Friday, will significantly brighten the picture .But equity markets stand a good chance of extending their gains over the coming week.

    Monetary Policy Report Hearings EUR: During these hearings the BOE Governor and several MPC members testify on inflation and the economic outlook before Parliament’s Treasury Committee. The hearings are a few hours in length and can create market volatility for the duration. Especially noted are the direct comments made about the currency markets.

    Leave a Comment

    Your email address will not be published.

    Related Articles

    Friday News December 2

    BOJ Gov Kuroda Speaks JPY: Kuroda as the head of the Bank of Japan, which controls short-term interest rates, has an important influence on the

    Wednesday News December 1

    CPI CHF: While the European Central Bank considers its next interest rate move, the Swiss National Bank must also decide how much to raise interest

    Wednesday News November30

    CORE/CPI Flash Estimate EUR: The euro zone is likely to experience a second double-digit inflation in November, according to analysts’ forecasts ahead of the release

    Tuesday News November 29

    GDP CAD: Canadian retail sales are expected to decline for the second time in the third quarter after not falling in the first half of