UK CPI and Japan GDP: Key Economic Data for the Week Ahead

UK CPI and Japan GDP: Key Economic Data for the Week Ahead

As the global economy continues to navigate the pandemic, the week ahead will focus on key data releases, including Japan’s GDP and the UK’s CPI. However, the ongoing impact of COVID-19 remains the central theme, with analysts debating whether certain economies have reached their peak. Here’s what to watch for in the coming days:

Sunday, August 16th – Japan’s GDP (Quarter over Quarter): Japan faces significant COVID-19 challenges, with over 1,200 cases reported on Saturday. Analysts are predicting a contraction of 7.3% in GDP for the last quarter, which would mark the largest decline since World War II.

Tuesday, August 18th – RBA Meeting Minutes: Australia, like Japan, initially benefited from a lax approach to the pandemic but is now grappling with a second wave, particularly in Victoria. Analysts expect a dovish report from the RBA, hinting at further rate cuts.

Wednesday, August 19th – UK CPI Figures: The UK’s COVID-19 curve is rising, and analysts predict a slight increase in the CPI, from 0.6% to 0.7%. A higher-than-expected increase could lead to a strengthening of the GBP.

Wednesday, August 19th – Canada CPI (Year over Year): Canada managed to avoid the strict lockdowns seen in other countries, and with its relatively stable COVID situation, analysts are predicting a modest CPI increase of 0.2%, which could strengthen the Canadian dollar.

Thursday, August 20th – USA FOMC Minutes: With the U.S. still struggling to contain the virus, the upcoming FOMC minutes may not significantly move the market, especially as many traders are on holiday. Nonetheless, the minutes could provide insights into future monetary policy actions.

This week promises mixed economic signals, and with many traders away for summer holidays, market movements may be muted. It’s an excellent time for traders to review strategies or practice through paper trading as we approach critical elections in the U.S. and New Zealand.