1. Thursday- EU Interest Rate Decision @ 12:45pm
2. Thursday–US Consumer Price Index (m/m) @ 1:30pm
3. Friday- US Retail Sales @ 1:30pm
ECB INTEREST RATE-The European Central Bank will release its interest rate on Thursday. A broad program may weigh on the euro while a narrow one may boost it.Interest rates in the Eurozone have been holding near zero for quite some time but the ECB could declare a rate cut in its deposit facility rate in the upcoming meeting in a bid to enhance the European economy. Market expectation is for ECB to maintain the main financing rate at 0.00%. All eyes will be on the rate statement and on Mario Draghi’s follow-up press conference. A dovish message from the rate statement or from Mario Draghi could dampen sentiment towards the euro while a hawkish statement will strengthen the euro.
US CONSUMER PRICE INDEX –The US will release its consumer price index report on Thursday. The figure is expected to show 0.1% (m/m) which is a bit lower than the prior month while it is expected to remain at 1.8% (y/y). A better than expected outcome will strengthen the USD while a weaker than expected will be negative for USD.
US RETAIL SALES - The United States will release its data for retail sales on Tuesday. The retail sale is forecast to show a 0.2% increase in August, which is lower than the previous month data of 0.7%. Auto-sales have sluggish recently while other sectors have continued to grow.The US-China trade war continues to drag on and the feebleness in the global economy is also expected to continue until trade tensions abate. A better than expected forecast will be positive for dollar while a worse than expected forecast will be negative for the greenback.