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Economic calendar: Will FED speakers buttress USD?

Summary:

  • UK’s services PMI is the key reading before noon
  • Switzerland CPI in the spotlight following bleak GDP growth
  • FED speakers and RBA’s Lowe are going to take the floor

A second day of the week does not abound in many crucial macroeconomic releases but we have some central banks’ speakers who could bring more volatility to the FX market. Moreover, the US is already back after the Labor Day, hence liquidity should be higher during afternoon. Let us present the most noteworthy events for today.

8:15 am BST - Swiss CPI: We already got a grim reading of Swiss GDP for Q2 which came in at 0.3% yoy against the forecast placed at 1.1% yoy. A big miss could suggest that ongoing exceptionally low inflation might act against economic expansion. August’s CPI is expected to show an increase by 0.5% yoy compared to the prior one at 0.3% yoy. Let’s add that slower economic growth in Switzerland has occurred amid quite a broad-based recovery across the old continent which could especially worrisome.

9:30 am BST - UK’s services PMI: Admittedly, UK’s manufacturing PMI turned out to be better than expected, yesterday’s print of construction PMI unveiled some sluggishness as it slipped to 51.1. However, taking into account that the services sector is by far the most important part of the UK’s economy, it means that today’s release should be much more scrutinized in order to assess the GBP’s attractiveness. The consensus suggests a mere decline from 53.8 seen in July to 53.5.

10:10 am BST - RBA’s Lowe speech: Governor Lowe will have an opportunity to account for its neutral to slightly dovish stance presented at today’s statement following the RBA’s meeting. The Australian dollar just barely responded to that event as odds for a change in rates stood at 0%.

FED speakers (Brainard - 12:30 pm BST, Kashkari - 5:30 pm BST): Given that we’re getting closer to another FED’s meeting, some speeches from the US central bank could be much more relevant. This is especially true when we take account of the latest bleak jobs report which missed estimations across the board. The US dollar is slightly losing ground in early European trading, hence buyers could look for some hints with regard to a rate increase as well as the beginning of the balance sheet reduction (it’s anticipated to be announced at this month meeting).

link do file download linkThe GBPUSD has respected a resistance zone placed in the vicinity of 1.2970, thus a move to the downside is on the cards. Source: xStation5

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