The main events of Friday include important data from the eurozone and the United States:
Today it is considered the busiest in terms of data releases, but these data are not expected to significantly affect the overall picture.
During the European session, we are waiting for the release of the Consumer Price Index (CPI) for the eurozone as well as the unemployment rate.
As for the US session, we will see the release of Canadian GDP and US personal spending reports (PCE), the Chicago Purchasing Managers Index and the final consumer confidence report from the University of Michigan will also be released, but their impact on the markets is usually limited.
- The start will be at 12:00 pm: (preliminary Consumer Price Index for August in the eurozone).
The annual inflation rate (CPI) for the eurozone is expected to reach 2.2% compared to 2.6% in the previous reading, while the core inflation index is expected to reach 2.8% compared to 2.9% previously.
As this report will not have much influence on the ECB's upcoming decisions, market reactions are likely to be calm unless there is a significant deviation from expectations.
- At 3: 30 pm: (personal consumption expenditures price index for August in the United States).
The annual inflation rate for personal spending (PCE) is expected to reach 2.6% compared to 2.5% in the previous reading, while the monthly rate is expected to reach 0.2% compared to 0.1% previously, The core Personal Spending Index is expected to register 2.7% year-on-year compared to 2.6% previously, with the monthly rate remaining steady at 0.2%.
This report will not change the direction of the US Federal Reserve, which is expected to cut interest rates next September regardless of these results, and the Fed's current focus will be on the labor market, and the next non-farm payrolls report (NFP) will be decisive in determining whether the Fed will cut interest by 25 or 50 basis points at the next meeting on September 18.
