Forex - Weekly outlook: September 13-17

Published 09/12/2010, 06:34 AM
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Investing.com – The week beginning September 13 follows one which saw the commodity currencies advance against the U.S. dollar, while the euro moved lower amid ongoing concerns over the health of the regions banking sector.

The Australian and New Zealand dollars gains came as strong economic data from China indicated that a slowdown in the world's second largest economy might be less severe than expected.

Meanwhile, sentiment towards the euro weakened ahead of a meeting of international banking regulators over the weekend and after the Irish government announced that nationalized lender Anglo Irish Bank would be split to wind down its assets.

Last week also saw the U.S. dollar remain close to a 15-year high against the yen amid fears that the rate of U.S. economic growth is slowing, with speculation over Japanese intervention in currency markets continuing.

Next week, the U.S. is to release data on retail sales, industrial production and consumer prices. The country is also to release key data on initial jobless claims.

Elsewhere in the world, the ZEW Centre for Economic Research is to release a key report on German economic sentiment. The euro zone is also to release data on consumer prices and industrial production.

In Britain, the Governor of the Bank of England is due to speak at a public engagement and the country is to release data on employment, consumer prices and retail sales. In Japan, the Governor of the central bank is also due to speak at a public engagement. The Swiss National Bank is due to release a report on monetary policy.

New Zealand's central bank is to announce its benchmark interest rate and the country is also to release key data on retail sales. Meanwhile, Australia is to release official data on housing and inflation while the Governor of the Bank of Canada is due to deliver a speech in Berlin.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Monday, September 13

Switzerland will begin the week by publishing a report on producer price inflation, a leading indicator of consumer inflation.

The U.S. will later release its federal budget balance, the difference in value between the federal government's income and spending during the previous month.

Later in the day, New Zealand will release data on retail sales, a primary gauge of consumer spending, which accounts for the majority of all economic activity.

Meanwhile, Britain is to release industry data on consumer confidence and house prices, both important indicators of overall economic health.

Tuesday, September 14

The U.S. will release data on retail sales, a leading gauge of consumer spending. The country will also release data on business inventories.

In the euro zone, the ZEW Centre for Economic Research is to release a key report on German economic sentiment while Eurostat is to release important data on industrial production, a leading indicator of economic health.

The U.K. is to release data on consumer price inflation. Consumer price inflation accounts for a majority of overall inflation and is a leading indicator of economic growth.

Later in the day, the Governor of the Bank of Canada, Mark Carney is due to speak in Berlin. His comments will be closely watched for any clues to the future direction of monetary policy. Meanwhile, Canada is to release important data on labor productivity and new vehicle sales.

Also Tuesday, the National Australia Bank is to release a report on Australian business confidence.

Wednesday, September 15

In the U.S., the Federal Reserve Bank of New York is due to release key data on manufacturing sector activity, while the Federal Reserve is to produce information on its capacity utilization rate, the percentage of available resources being utilized by manufacturers, mines, and utilities.

The U.S. is also due to release key data on import prices, industrial production and crude oil inventories.

Later in the day, the euro zone is to produce data on consumer prices, a leading indicator of inflation, as well as official data on employment change.

In Britain, the Governor of the Bank of England Mervyn King is expected to testify before the Treasury Committee on inflation. Later in the day, Governor King is due to speak at a public engagement and his comments will be closely scrutinized for any clues to the future direction of monetary policy.

The U.K. is also to publish data on claimant count change, the change in the number of people unemployed during the previous month as well as data on the country’s unemployment rate and average cash earnings, which is the change in the price businesses and the government pay for labor.

In Switzerland, the ZEW research institute will publish a monthly survey of Swiss economic expectations, a leading indicator of economic health.

Canada is to release information on sales in the manufacturing sector, while Bank of Canada Deputy Governor Timothy Lane is due to speak at a public engagement.

Elsewhere, Australia is due to produce key data on new motor vehicle sales, housing starts and consumer sentiment.

The Reserve Bank of New Zealand is to announce its benchmark interest rate. The rate statement will be followed by a closely watched press conference. The country is also due to produce data on its manufacturing sector, while Japan is to publish a report on industry activity, a leading indicator of economic health. 
 
Thursday, September 16

The U.S. is to release key weekly data on initial jobless claims, after which the U.S. Treasury is to publish a report on TIC Long-Term purchases, which measures the difference in value between foreign long-term securities purchased by U.S. citizens and U.S. long-term securities purchased by foreigners.
 
Later in the day, the Federal Reserve Bank of Philadelphia is due to release key data on the manufacturing. The U.S. is also to produce data on the country's current account and producer price index, a leading indicator of consumer inflation.

Meanwhile, the euro zone is to produce data on its trade balance, which is the difference in value between imported and exported goods and services.

Britain is due to release key data on retail sales and industrial order expectations, while the Bank of England is to produce data on consumer inflation expectations.

The Swiss National Bank is due to publish its monetary policy assessment. The country is also expected to release a report on its industrial production.  
  
Meanwhile, the Governor of the Bank of Japan is due to speak at an engagement in Tokyo. His comments will be closely scrutinized for any clues to the future direction of monetary policy.

Elsewhere, Australia is to release key data on inflation expectations, while the Reserve Bank of Australia is due to publish both its quarterly bulletin as well as its annual report, providing a summary of the prior year's operations.

Friday, September 17

The U.S. is to end the week by producing key data on its consumer price index, while the University of Michigan is to release revised data on consumer sentiment and inflation expectations.

Meanwhile, the euro zone is to publish key data on the region’s current account, while Germany is to release a report on its producer price index, a leading indicator of consumer inflation.

Elsewhere, the Reserve Bank of Australia’s Assistant Governor Philip Lowe is expected to speak at the NatStats 2010 Conference in Sydney.

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