This Week 08.10.12 – 12.10.12

Uncertainty remains within the Euro zone this week as Spain prolongs the inevitable; having failed to formally request financial assistance thus far. After a week of positive sentiment for the Euro following the release of Spain’s 2013 budget and encouraging bank stress test results, optimism towards Spain could now begin to wane and make the likelihood of terms being attached to a bailout far less favourable for the debt ridden country.

Elsewhere in the Eurozone this week, German Chancellor Angela Merkel will meet Greece Prime Minister Antonis Samaras in Athens. Likely to be top of the agenda will be the next tranche of bailout loans Greece is hoping to secure amid concerns the country could be bankrupt as early as November.

North America starts this week with a public holiday meaning we are likely to see little movement in the Dollar until later in the week, giving markets more time to digest the surprising improvement in employment figures that came out of the US late last week.

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

Public Holiday USA and Canada
EU Finance ministers meeting
03:30 HSBC China Services PMI
07:00 German Trade Balance
09:30 EU Sentix Investor Confidence
11:00 German Industrial Production

German Chancellor Angela Merkel will meet European Greece Prime Minister Antonis Samaras
01:30 National Australia Bank’s Business Confidence
08:30 ECB President Draghi Speech
09:30 UK Industrial Production
09:30 UK Manufacturing Production
09:30 UK Total Trade Balance
15:00 UK NIESR GDP Estimate (3M)

19:00 US Fed’s Beige Book
23:30 Business NZ PMI

Chinese New Loans
02:30 Australian Unemployment Rate
07:00 German Consumer Price Index
07:00 German Harmonised Index of Consumer Prices
09:00 ECB Monthly Report
13:30 US Initial Jobless Claims
13:30 US Trade Balance
19:00 US Monthly Budget Statement

IMF meeting in Tokyo
10:00 EU Industrial Production
13:30 US Producer Price Index
13:30 US Producer Price Index ex Food & Energy
14:55 US Reuters Consumer Sentiment Index