The general consensus appears that Fed Chairman Bernanke has opened the way for further easing by stating that it will boost accommodation as needed for growth. All eyes are now focused on this week’s jammed packed economic calendar in order to gauge if the FOMC will pull the trigger on the 13th or whether it will wait until November. Economic data out this past week was by all accounts somewhat confirming what long has been known that the economic situation has deteriorated with the CB Consumer confidence coming in at 60.6 with market forecasts of 65.8 and US unemployment claims continues to worsen. No surprise though on US GDP coming in on forecast of 1.7% q/q
With ECB President Draghi a no show at the Jackson Hole symposium it has sent a message that just maybe this week’s ECB meeting maybe a show stopper. Markets have clearly focused in on US economic news this week.
China’s economic data continues to highlight that their manufacturing is in a deepening contraction this comes with the release of the official manufacturing PMI data which came in at 49.2 below market expectations of 49.8.
THE WEEK AHEAD
Monday: EUR Spanish Manufacturing PMI, Italian Manufacturing PMI, (Tentative) ECB President Draghi Speaking
Tuesday: US ISM Manufacturing PMI,
Wednesday: EUR Retail Sales, EUR German 10Yr Bund Auction, USD Revised Nonfarm Productivity
Thursday: EUR French 10Yr Bond Auction, German Factory Orders, ECB Interest Rates Decision, ECB Press Conference, USD ADP Non Farm Employment Change, USD Unemployment Claims, ISM Non-Manufacturing PMI, Crude Oil Inventories
Friday: EUR German Industrial Production, USD Non Farm Employment, USD Unemployment Rate
Saturday: China CPI y/y, China PPI y/y