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Week Ahead: UK Inflation Lands Wednesday With No Central Bank Decisions Due

No UK, US or euro-area rate decision is due this week, so UK September inflation on Wednesday at 07:00 UK time carries the most weight, with jobs data on Tuesday and flash PMIs on Friday.

UK consumer price inflation for September is due on Wednesday at 07:00 UK time, the biggest scheduled event in a week without a central bank rate decision.

The consensus estimate is 3.4% year on year, up from 3.1% previously. The Bank of England’s rate stands at 3.75%, the Federal Reserve’s target range at 3.75%-4.00% and the European Central Bank’s deposit rate at 2.50%. None of the three meets this week.

The week follows a Friday when US stocks fell. The S&P 500 lost 1.09% to 7,659.44 and the Nasdaq 100 fell 2.50% to 29,187.55. Germany’s DAX rose 0.95% to 25,622.61, and GBP/USD gained 0.42% to close at 1.33274.

Key events by day

All times are UK time. Tuesday’s UK labour data also include employment change, with a consensus of 60 against 67 previously, and HMRC payrolls, expected at -15 against -26.

DayUK timeEventPreviousConsensus estimate
Monday03:00China GDP, third quarter, year on year4.34.4
Tuesday07:00UK unemployment rate, August4.95.0
Tuesday07:00UK average earnings including bonus3.93.8
Tuesday07:00UK average earnings excluding bonus3.53.4
Tuesday07:00UK claimant count change27.819.4
Tuesday10:00Germany ZEW economic sentiment34.731.6
Wednesday07:00UK CPI, September, year on year3.13.4
Wednesday07:00UK CPI, month on month0.50.3
Wednesday07:00UK core CPI, year on year2.62.7
Wednesday14:00Bailey speaksNo dataNo consensus
Wednesday17:00Lagarde speaksNo dataNo consensus
Thursday13:30US initial jobless claims199200
Friday07:00UK retail sales, month on month0.5-0.2
Friday08:30Germany flash composite PMI53.853
Friday09:30UK flash composite PMI5251.7
Friday14:45US flash composite PMI58.457.6

UK retail sales on Friday are expected at -0.2% on the month against 0.5% previously, and 2.0% on the year against 2.4%. Euro-area flash PMIs also land on Friday at 09:00, with a consensus of 52.3 against 53.1 previously.

The two that matter most

UK CPI is the biggest entry. Headline inflation is expected at 3.4% year on year, up from 3.1%, with month-on-month inflation at 0.3% against 0.5%. Core CPI is expected at 2.7% year on year against 2.6%, and 0.1% on the month against 0.3%. Bailey speaks at 14:00 the same day, with no consensus attached.

Bullet chart comparing UK headline and core CPI inflation, previous reading against the consensus estimate for September, both expected to tick higher.
UK September CPI and core CPI: previous reading against consensus, year on year.

The labour data on Tuesday at 07:00 come first. Unemployment for August is expected at 5.0% against 4.9%, while average earnings including bonus are expected to ease to 3.8% from 3.9%, and excluding bonus to 3.4% from 3.5%.

GBPUSD.FOREX

Earnings

Consensus figures are for earnings per share. On Tuesday GE reports before the US open, expected at 2.02, and Netflix (NASDAQ: NFLX) reports after the close, expected at 0.82. On Wednesday AT&T reports before the open, expected at 0.61, and Tesla and IBM report after the close, expected at 0.21 and 2.87. Procter & Gamble reports before the open on Thursday, expected at 1.89.

The UK clocks change on the 25th of October, so this week’s times are all in British Summer Time.

Asktraders News Team
Asktraders News Team
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The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.

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