Wednesday 30th August
8 AM ET
What is it?
German HICP
HICP is a measure of prices used by the Governing Council of the EU to define and assess price stability in the euro area as a whole in quantitative terms.
German CPI
The Consumer Price Index is a measure of the average price level of a fixed basket of goods and services purchased by consumers.
What to expect
If inflation rises, it usually leads to a stronger currency. Two reasons for this are the economy is seen growing as businesses are able to pass on higher prices to consumers that have a stronger appetite for goods and services. The second reason is the expectation the ECB will continue or start raising rates to keep inflation in check.
When rates are raised the value of the currency increases due to investors who look for a higher rate of return on their investments.
The stock market usually responds in a negative way in a tightening cycle, as rising inflation leads to more hawkish action from the central bank. In a non-tightening cycle, higher inflation reads shows a healthy economy with businesses gaining more profit from higher prices.
Thursday 31st August
2:45 AM ET
French GDP
What is it?
GDP shows the total currency value of all goods and services in a nation. That also includes items that are on the shelf.
What to expect?
Robust economic activity can firm up interest rates, which increases the demand for the Euro
A healthy economy generates more business earnings, while a sluggish business environment depresses sales and income.
If the economy is growing at or below the pace projected by economists, the bond market is likely to react positively
3:55 AM ET
German Unemployment Change
What is it?
A measure of the absolute change in the number of unemployed people in Germany using seasonally adjusted data.
What to expect
A rise in this indicator has negative implications for consumer spending, as there’s less people working and therefore diminishes economic growth in the country. Generally, a reading above expected is seen as negative (or bearish) for the EUR, while a low reading is seen as positive (or bullish).
5 AM ET
Eurozone CPI
The Consumer Price Index is a measure of the average price level of a fixed basket of goods and services purchased by consumers.
What to expect
If inflation rises, it usually leads to a stronger currency. Two reasons for this are the economy is seen growing as businesses are able to pass on higher prices to consumers that have a stronger appetite for goods and services. The second reason is the expectation the ECB will continue or start raising rates to keep inflation in check.
When rates are raised the value of the currency increases due to investors who look for a higher rate of return on their investments.
The stock market usually responds in a negative way in a tightening cycle, as rising inflation leads to more hawkish action from the central bank. In a non-tightening cycle, higher inflation reads shows a healthy economy with businesses gaining more profit from higher prices.
Friday 1st September
German Mfg PMI (3:55 AM ET) / Eurozone Mfg PMI (4 AM ET) / UK Mfg PMI (4:30 ET)
What is it?
Manufacturing PMI displays how strong the manufacturing sector is within a nation based off of a survey of Purchasing Managers. 50 or above denotes an expanding sector. Below 50 shows a contracting sector.
What to expect
Stronger than expected PMI figures lead to a firming up of a currency, as the manufacturing sector is the more volatile sector compared to the services sector. Any significant declines or overall weaker than expected data from most European nations can lead to the euro seeing a bearish reaction.
Stocks prefer to see stronger figures when a central bank isn’t tightening monetary policy. If the manufacturing figure is stronger than expected, traders take it as a positive sign the economy is growing. In a tightening cycle, stock traders see stronger figures as bearish, as a central bank might decide to raise rates or continue hiking for longer to contain any economic momentum to their pace.
