Currency Matters

Spanish Prime Minister Mariano Rajoy was breathing a sigh of relief yesterday after his People’s Party claimed victory in regional elections. Carlos Floriano, the party campaign chief, took this as confirmation of public approval for the government’s commitment to budget cuts and tough austerity targets. This was a much needed vote of confidence for the Spanish Prime minister who really now does have the green light to officially seek financial assistance from Europe. However, any formal request is likely to be delayed by a couple of weeks to prevent any assumption that they were simply waiting for the elections.

We see very little economic data being released early this week, however as the week progresses substantial movement could be seen in the markets as the UK and US both release Q3 GDP figures. The US will also be making an interest rate decision on Wednesday, although the general consensus is that the rate will remain unchanged. In Europe the release of PMI figures, consumer confidence data, and a meeting between ECM President Mario Draghi and German Chancellor Angela Merkel, all have the potential to impact upon the Euro.

Please find a summary of this week’s economic calendar below:

22.10.12
08:00 Swiss Monthly Statistical Bulletin

23.10.12
07:00 UK Nationwide Housing Prices
14:00 Bank of Canada Interest Rate Decision
15:00 EU Consumer Confidence
18:00 BoE Governor King Speech

24.10.12
ECB President Mario Draghi visits Germany
01:30 Australian Consumer Price Index
08:58 EU Markit Manufacturing PMI
08:58 EU Markit PMI Composite
08:58 EU Markit Services PMI
13:58 US Manufacturing PMI
19:15 US Fed Interest Rate Decision
21:00 Reserve Bank of New Zealand Interest Rate Decision

25.10.12
07:00 German Retail Sales
09:30 UK GDP Q3
13:30 US Durable Goods Orders
22:45 New Zealand Trade Balance

26.10.12
07:00 German Consumer Confidence Survey
08:00 Swiss Leading Indicator
13:30 US GDP Price Index Q3
14:55 Reuters/Michigan Consumer Sentiment Index

22/10/12