The week ahead (11-15 September)

11 Sep 2017 09:30 AM

This week the markets are looking at many important economic data that will have an impact on market movements. Below are the highlights of these events and data.

Bank of England Interest Rate Decision / Inflation Data / Labor Market Data

The Bank of England is due to announce its interest rate decision on Thursday and interest rates are widely expected to remain unchanged at 0.25% at historic lows as the UK economy suffers from uncertainties surrounding Brexit negotiations. A few policymakers have already called for a move in the direction of higher interest rates due to higher inflation caused by the depreciation of the pound sterling.

The interest rate decision will be preceded by British inflation data, which is expected to rise again to 2.8% in August after stabilizing during the last two months at 2.6%. Also, data on the labor market, which is expected to continue to improv will be released, especially unemployment, which is at its lowest level in 42 years.

Australian labor market data

Australia's labor market data is expected to be released on Thursday and the economy is expected to add about 19.2K jobs in August after 27.9K jobs were added in July and unemployment rates is expected to stabilize at 5.6%.

The Reserve Bank of Australia kept interest rates unchanged for the 12th straight meeting at the beginning of the month at 1.5% and remain neutral at the moment.

Swiss interest rate decision

It is highly expected that the Swiss National Bank will maintain its monetary policy unchanged and that interest rates will remain in the negative range at -0.75%, as well as remain committed to intervening in the currency market when necessary to reduce demand for the Swiss franc.

US inflation data

US inflation data is expected to be released in August, with the consumer price index expected to rise by 0.3% and the core index to rise by 0.2%. And on an annualized basis, it is expected to rise by 1.6%. The Fed usually aims to reach the target at 2% or slightly lower.

Markets will continue to be focus on the lookout for coming from the United States in the coming period, particularly with regard to tax reforms and the effects of hurricane Irma in addition to tensions between the United States and North Korea.

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