The economic docket picked up yesterday with the release of three pieces of high tier data from the UK, US and Eurozone. Market movement however was slightly subdued as economists’ remain sceptical of this Thursday’s FOMC meeting.
Firstly, we had the release of both UK CPI and German ZEW economic sentiment. Inflation in the UK remained anemic after falling 0.1% in July. Another measure of UK inflation was relatively positive with the RPI (Retail Price Index) exceeding expectations and posting a better than expected 1.1%, its highest since February. German ZEW economic sentiment followed shortly after and continued its bearish trend. The figure registered its worst reading this year at 12.1, missing economists’ consensus and adding further pressure to the Eurozone.
Retail sales in the US climbed for a second straight month, however, at a slower pace than forecast. The 0.2% increase followed a 0.7% gain last month. Although confidence has taken a hit due to global growth concerns (i.e. China Slowdown, lagging inflation and low energy prices), the data over the last two months still shows households are willing to spend their savings made at the pump.
The UK and US are the main focus once again. From the UK, the labour numbers will be closely monitored in terms of the claimant count and the unemployment rate. In addition, the average earnings for the last three months is set for release. As stated earlier inflation numbers are being closely monitored on a global basis for clues on the timing for hiking rates. Both Eurozone and US CPI numbers are for set for release today.