FX Week Ahead Overview:
- The August German manufacturing PMI, the August German Ifo business climate survey, and the September German GfK consumer confidence reading are all likely to point to a deteriorating growth environment for the Eurozone’s largest economy.
- The August UK manufacturing PMI should show further signs of economic slowdown as the UK economy moves closer towards stagflation,
- July US durable goods orders and the July US PCE index should be market moving, but not nearly as important as Fed Chair Powell’s Jackson Hole speech on Friday.
For the full week ahead, please visit the DailyFX Economic Calendar[1].
08/23 TUESDAY | 08:30 GMT | GBP Manufacturing PMI Flash (AUG)
The UK economy is moving towards stagflation and data due this week is likely to further the narrative that the boxes are being checked. The August UK manufacturing PMI is due in at 51.1 from 52.1, barely holding in expansion territory. Chances of a weak print persist as UK energy prices continue to skyrocket[2] and UK inflation readings reach fresh multi-decade highs, leaving the Bank of England in a bind as the summer comes to an end. More weakness is likely ahead for the Sterling.
08/24 WEDNESDAY | 12:30 GMT | USD Durable Goods Orders (JUL)
The US economy revolves around consumption trends, given that approximately 85% of GDP is accounted for by the spending habits of businesses and consumers – 15% from business investment and 70% from consumer consumption. As such, the durable goods orders reportmake for an important barometer of the US economy. Durable goods are items with lifespans of three-years or longer – from refrigerators and washing machines to cars and airplanes. These items typically require greater capital investment or financing to secure, meaning that traders can use the report
