Daily Brief, Oct 10: Economic Events Outlook – Traders Brace for GDP & CPI Figures
Arslan Butt • 2 min read
Good morning, traders.
During the Asian session, financial markets traded dramatically as the demand for safe-haven assets was triggered after Turkish forces attached northeastern Syria. Turkish forces launched a ground assault in northeastern Syria hours after fighter jets attacked the border area as Ankara eventually unleashed a long-threatened attack on the Kurdish-held region. We noticed a dramatic demand for GOLD, causing its prices to surge to 1,517 during the early Asian session.
Besides, the greenback traded weaker despite rumors that China is ready for a partial trade agreement. These rumors are draining the safe-haven factor from the market as China’s willingness towards a trade agreement is a great deal despite the US blacklisting Chinese companies earlier in the week.
Today, economic events such as UK’s GDP, ECB Policy Minutes, and US inflation are likely to influence the market. Who’s up for it?
Watchlist – Major Economic Events to Trade Today
The Office for National Statistics is due to report Gross Domestic Product figures for the United Kingdom. For newbies, it’s the broadest measure of economic activity and the primary gauge of the economy’s health and reports a change in the total value of all goods and services produced by the economy.
The British economy expanded by 0.3% in July following a deterioration and shrinking in the second quarter. The forthcoming release is for August, and it was the first month of Boris Johnson as prime minister. It will be intriguing to see if the economy remains in expansion — in line with optimistic employment numbers — or experiences a slide lower due to Brexit risk.
As per economists’ forecast, the GDP growth rate of 0.0% is on the cards, which are below the 0.3% prehand figure. Sterling may trade under bearish pressure this week.
EUR – ECB Monetary Policy Meeting Accounts – Thursday – 11:30 GMT
The European Central Bank is due to release minutes of Monetary Policy Meeting from ECB’s last policy decision, which recorded a decision to lower the deposit rate to -0.50% and to initiate further bond-buying worth €20 billion per month, starting from November.
Those decisions were dubious and triggered critique from various members of the Frankfurt-based organization. A general concern that arose after ECB’s dovish policy was, “did the European Central Bank acted too early? Will ECB proceed with its expansionary monetary policy, or is a contractionary policy set to kickback?”
Well, these policy minutes may unveil further clues about the forward guidance.
The Bureau of Labor Statistics is due to report a change in the price of goods and services purchased by consumers.
US consumer prices are rising in the world’s biggest market after a long span of weaker inflation. Whereas the Consumer Price Index (CPI) grew by a moderate 0.1% in August, Core CPI improved by 0.3% — shifting the yearly gain to 2.4%. The economic figures for September are crucial for the next Fed rate decision.
Economists are expecting CPI figures to surge by 0.1% vs. 0.1% beforehand, and core inflation may rise by 0.2% vs. 0.3%. Well, a surge in core inflation may cease speculation of another interest rate cut.
That’s all for now, but do check F.X. Leaders economic calendar for the live coverage of these significant events.