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The most important economic events expected this week 19 to 23 October 2020
Inflation has been reported lower in the Eurozone and Japan, where economic activity remains weak due to the Covid-19 pandemic. The UK, Australia and Canada released weak employment data, and unemployment claims in the US rose.
The Eurozone is still struggling with low levels of inflation. In September, inflation in the Eurozone reached -0.3%, marking a second consecutive decline. The core reading slowed to 0.2%, down from 0.4% previously. In Germany, the CPI recorded -0.2%, the third consecutive decline. In France, inflation is down 0.5%.
Japan also continues to deal with low inflation rates. The producer price index fell 0.8% in September, marking the eighth consecutive decline.
In the United Kingdom, employment numbers were somewhat varied. Jobless claims decreased to 28.1 thousand in September, which is much better than estimates of 78.8 thousand. The unemployment rate increased in August to 4.5% from 4.1%. Wage growth improved to 0.0% after three consecutive declines.
The Australian dollar lost ground after investors were treated by weak jobs in Australia. The economy lost 29.5 thousand jobs in September, after three straight gains. Also, the unemployment rate rose to 6.9% from 6.8%.
Canada also delivered the weak employment report, with the ADP Nonfarm Payrolls figure coming in at -240.8K.
Consumer price inflation in the US slowed in September, as inflation levels remained at low levels. Both key and core readings fell to 0.2%, down from 0.4% previously. Jobless claims rose to 898,000, the highest level in seven weeks.
German PPI: Tuesday, 10:00. PPI slowed to 0.0% in August, as German inflation levels remained low. A slight increase of 0.1% is expected for September.
UK Inflation Report: Wednesday, 09:00. Consumer inflation slowed to 0.2% in August, but is expected to improve to 0.4% in the September release. Core CPI is expected to rise to 1.3% from 0.9% in August.
Chinese GDP: Monday, 5:00. China is expected to be the only major economy to register growth this year. In the second quarter, GDP grew by 3.2% and expectations for the third quarter are at 5.5%.
RBA Monetary Policy Meeting Minutes: Tuesday, 03:30. The Reserve Bank of Australia left interest rates unchanged at its policy meeting earlier this month, but dropped a broad hint that it may cut rates before the end of the year. The meeting minutes will shed some light on the meeting's deliberations.
Canadian Inflation Report: Wednesday, 15:30. Consumer inflation remains at low levels as the economy continues to struggle with the Covid-19 pandemic. The CPI fell 0.1% in August, after a previously mentioned zero reading. Will inflation rebound in the September issue?
All times are KSA
