The markets open next week with the focus on China as the 19th Communist Party congress takes place this week. The event, where President Xi is expected to speak comes in a week where inflation and quarterly GDP figures are expected to be released.
It will also be a busy week for the British pound which will see the monthly inflation figures and the monthly labor market data. Expectations point to UK’s inflation touching 3% which would definitely put the BoE officials in a dilemma.
Data from the US is relatively moderate with only Fed member speeches lined up over the week. The US housing market data will be coming out later in the week. New Zealand will be reporting on the quarterly CPI while Australia jobs report is expected this week.
Here’s a quick recap into this week’s economic calendar for the currency markets.
Economic and political events from China
The week ahead is quite a busy one from China with both economic and political events lined up. The 19th Party congress in China will start on Wednesday and the event is expected to last for a week. More details are expected earlier in the week and will be accentuated by the speech from President Xi.
For traders, clues about the possible slowdown in China’s growth target could be of main importance although the risks for the coming years are still far-fetched.
Earlier today, China’s inflation data showed that consumer prices rose 1.6% on the year matching expectations but slowed from August’s price increase of 1.8%. Producer prices rose 6.9% on an annual basis beating expectations. Producer price index is expected to post a steady gain of 6.3%.
China GDP Growth Rate: 6.9% (Source: Tradingeconomics.com)
Policy makers are expecting to keep inflation below 3% for 2017. The PPI also showed an increase in August, rising from 5.5% in July.
Later in the week, on Thursday, the GDP data will be coming out. Economists are expecting China’s GDP to rise 6.8% after posting a GDP growth rate of 6.9% in the second quarter. The data is within the government’s target of 6.5% to 7%. On a quarterly basis, GDP rose 1.7% from Q1 in the previous quarter.
