THE ECB HEADLINES AN IMPORTANT WEEK FOR CENTRAL BANK POLICY MAKERS
INTEREST RATES AND GDP IN FOCUS
The Reserve Bank of Australia, Bank of Canada and European Central Bank meet this week to decide on interest rates. Investors will pay particular attention to the ECB press conference, where Mario Draghi may offer further clues on the timing of QE tapering and his thoughts on the recent appreciation of the euro currency.
Traders will also look to second quarter gross domestic product figures from the Swiss, Eurozone, Australian, and Japanese economies. And we also see the release of UK PMI Services data, for the month of August.
Monday 4th September, United Kingdom Construction PMI
The United Kingdom economy releases construction PMI data for the month of August, which measures the activity level of purchasing managers in the UK construction industry. Analysts are expecting a 52.0 reading, which is marginally up from July's 51.9 reading.
Traders should also be aware that the economies of America and Canada will be celebrating U.S Labour Day and Canadian Labour Day.
Tuesday 5th September, RBA Interest Rate Decision
The Reserve Bank of Australia meet on Tuesday to decide on interest rates and are widely expected to keep rates unchanged at 1.50 percent.
Reserve Bank of Australia Governor Philip Lowe, will also deliver the RBA policy statement, where traders will watch for any mention of the rising Australian dollar. The statement will contain the outcome of bank's interest rate decision and discusses the economic conditions that influenced the decision.
Wednesday 6th September, BOC Interest Rate Decision
After seeing weak domestic economic data in July and August, the Bank of Canada governing council will come to a consensus on where to set rates at the September meeting. In the previous policy meeting, the BOC increased interest rates 0.25 percent, for the first time in over seven years.
The current Canadian rate of interest stands at 0.75 percent, after being carefully maintained by the BOC at 0.50 percent, since July 2015.
Thursday 7th September, ECB Interest Rate Decision
The European Central Bank are expected to keep interest rates unchanged and maintain the ECB deposit facility rate at a record low –0.40 percent.
Investors will pay close attention to the ECB press conference, where Mario Draghi will give his current assessment on the outlook of the European economy, and answer questions from the audience on a variety of topics, including QE taper timing.
Friday 8th September, Chinese Imports and Exports
The Chinese economy releases important export data, which measures the export of goods and services from China, which consists of all transactions in goods and services from residents to non-residents.
Chinese Imports measures all goods and services brought into China from another country in a legitimate fashion, typically for use in trade. Import goods or services are provided to domestic consumers by foreign producers.