Currency Matters

Most of the focus last week focused on Spain as the Spanish government committed itself to meeting tough deficit targets laid out in its 2013 Budget. Additionally, the results of an independent bank stress test were released last week showing that Spain will require a further EUR 59.3 billion to stave off a serious economic downturn. The path has now well and truly been paved for Spain to seek financial assistance from the EFSF/ESM (a bailout), which is something we will likely see before the end of the month.

This week the BoE and ECB will be holding monetary decision meetings and whilst there is the possibility of interest rates being adjusted, it is expected that they will remain unchanged in October. Other key pieces of economic data being released this week include a number of PMI results from the Euro zone and the US, as well as US unemployment and payroll figures.

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

08:58 EU Markit Manufacturing PMI
09:28 UK Markit Manufacturing PMI
09:30 UK Mortgage Approvals
09:30 UK Consumer Credit
10:00 EU Unemployment Rate
13:58 US Markit Manufacturing PMI
15:00 US Construction Spending
15:00 US ISM Manufacturing PMI

05:30 RBA Interest Rate Decision
09:30 UK PMI Construction

09:00 EU Markit Services PMI
09:28 UK Markit Services PMI
10:00 EU Retail Sales
13:15 US ADP Employment Change
15:00 ISM Non-manufacturing PMI

12:00 BoE Interest Rate Decision
12:00 BoE Asset Purchase Facility
12:45 ECB Interest Rate Decision
13:30 ECB President Draghi’s speech
13:30 US Initial Jobless Claims
19:00 US FOMC Minutes

11:00 German Factory Orders
13:30 US Nonfarm Payrolls
13:30 US Unemployment Rate

01.10.12 Mark Webster