Article by ForexTime
The first week of September will be a busy one in terms of economic data releases, especially for major central bank policy meetings.
To start off on Monday, China will release its official manufacturing PMI (purchasing managers’ index) which is forecast to show the world’s second-largest economy may have slowed in August.
Other data from Asia include Japanese capital spending data for the second quarter, which will be used to revise GDP figures due to be released on September 8.
From Europe, German GDP is due (for the second quarter) and Markit manufacturing PMIs from the Eurozone for August.
On Tuesday focus will be on the Reserve Bank of Australia’s rate decision. The Institute of Supply Management in United States releases manufacturing PMI data which probably was near the highest level in more than three years in August, indicating factories are helping the economy.
On Wednesday, Australian GDP numbers are out. Forecasts are that economic growth may have slowed in the second quarter to less than half the 1.1 percent pace of the first three months of 2014, when exports and housing construction boosted output. Chinese non-manufacturing PMI data will also be watched during the Asian session.
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Later on in the day, Eurozone and UK services PMI reports are on the docket.
In the North American Session, the Bank of Canada policy meeting is on, followed with a rate announcement. The BoC is expected to leave the benchmark interest rate at 1 percent, where it has been since the last four years. Investors will see if the bank’s statement continues to focus on weak growth, even with inflation above its 2 percent target.
On Thursday, the Bank of Japan, the European Central Bank and the Bank of England hold policy meetings.
After a two-day meeting, the BoJ will announce its monetary policy decision. Governor Haruhiko Kuroda has reiterated recently that the BoJ will continue policy accommodation until the price stability target of 2 percent inflation is achieved, and would adjust policy if Japan fell short of that goal. Kuroda’s press conference will be closely watched.
The BoE rate announcement comes first. Last month two of nine MPC member makers voted to raise the key rate from a record-low 0.5 percent. BoE Governor Mark Carney has said officials will put increasing weight on wage data before deciding whether to increase borrowing costs.
ECB chief Mario Draghi has signaled that large-scale asset purchases may be needed to defend the euro region against deflation. The decision comes at 13:45 CET in Frankfurt followed by Draghi’s press conference at 14:30 CET.
The US releases trade balance data. The trade deficit probably widened in July as stronger domestic demand prompted companies to import more from overseas.
The private payrolls report from ADP for August will be released but it is Friday’s nonfarm payrolls report that will be more closely watched. Forecasts are that US employers probably added jobs at a faster pace in August which should help lower the jobless rate.
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