Period: Jun
Previous Reading: 0.3% m/m, 1.2% y/y
Forecast: -
Actual Reading: -

Assesses changes in the cost of living by measuring changes in the prices of consumer items. The CPI is the headline inflation figure that indicates the strength of domestic inflationary pressures. Simply put, inflation reflects a decline in the purchasing power of the Euro in Italy , where each Euro buys fewer goods and services. CPI is the most popular way to measure changes in purchasing power. The report tracks changes in the price of a basket of goods and services that a typical Italian household might purchase. An increase in the index indicates that it takes more Euros to purchase this same set of basic consumer items.

Hide

Period: m/m, July
Previous Reading: 0.4%
Forecast: -
Actual Reading: -

Monthly measure of sales of goods to consumers at retail outlets. The figure is a significant market mover, valuable both for its timeliness and insight into consumer demand and consumer confidence. Consumer spending is vital to the US economy, accounting for more than two-thirds of all economic activity. Given that retail sales make up a hefty one third of such spending, the Advanced Retail Sales figure acts as a measure of consumer demand before GDP is released.

The figure has its limits, though. For instance, the timely release of the report comes at the cost of volatility in the figures and significant monthly revisions. It is not unusual for the figure to come out positive one month, only to be subsequently revised as negative. Retail Sales can also be volatile due to seasonality. Additionally, the report has been criticized for excluding service sector sales and failing to adjust for inflation. Despite these drawbacks, the figure still moves the market on release, mainly because of the importance of consumer spending to the US economy.

The Retail Sales figure is calculated as the total receipts of retail sales in nominal dollars based on a sample of stores throughout the month - returns, taxes and finance charges are excluded. It appears in the headlines as the annualize percentage change from the previous month.

Advance Retail Sales Less Autos

The Retail Sales figure is also reported excluding automobile sales. Given their high cost, auto sales contribute significantly to retails sales, comprising nearly a quarter of the figure. As a result, changes in automobile sales can produce high fluctuations in the retails sales report. Vehicle sales are prone to seasonal changes, thereby easily distorting retail sales trends. To provide a more accurate picture of retail sales the auto component is removed and followed more closely.

Hide

Period:
Previous Reading: 0.1%
Forecast: 0.1%
Actual Reading: -

The Bank of Japan Policy Board meets once a month for two days to discuss economic developments inside and outside of the country. The culmination of the meeting is the announcement of any adjustments to interest rates or other aspects of monetary policy.

Like any central bank the BOJ is tasked with ensuring price stability while taking into account economic growth, employment, and recommendations from the elected government. With this goal in mind, a "Guideline for Money Market Operations" is established at each meeting. Changes in the rate have far-reaching consequences, affecting consumer loans, mortgages, bonds and the exchange rate of the Yen. The statement is the Bank of Japan's collective outlook on the economy as well as a source for clues on future monetary policy decisions. When it comes to interest rates, the future direction of rates is usually far more important than its current rate.

Hide

Period:
Previous Reading: 4.50%
Forecast: 4.50%
Actual Reading: -

The Bank of Australia decision about where to set the interest rate mostly depends on the inflation.

Hide

Period:
Previous Reading: 0.75%
Forecast: 1.0%
Actual Reading: -

The Bank of Canada Interest Rate Decision.

Hide

Period:
Previous Reading: 0.50%
Forecast: 0.50%
Actual Reading: -

The announcement of whether the Bank of England has increased, decreased or maintained the key interest rate. The BoE meets monthly to decide on monetary policy. After each meeting policy decisions are announced. The main task of the Bank of England's Monetary Policy Committee is to set the monetary stance by fixing the overnight borrowing rate, which is incremental in determining the short-term rates. Through this mechanism, the BoE attempts to affect price levels in order to keep inflation within the target range while maintaining stable economic growth and employment.

The BOE Rate decision has great influence on financial markets. Changes in rates affect interest rates for consumer loans, mortgages, bond, and the exchange rate of the Pound. Increases in rates or even expectations of increases tend to cause the Pound to appreciate, while rate decreases cause the currency to depreciate.

The Bank of England Monetary Policy Committee issues a statement with every rate announcement. Because the decision itself is usually highly anticipated, the wording of the BOE statement is usually as important if not even more important than the actual interest rate move made by the central bank. The statement contains the BOE's collective outlook on the economy as well as hints about future monetary policy while the change to interest rates is nothing more than a number. The statement provides clues on plans for the future. When it comes to interest rates, the future direction of rates is usually far more important than its current rate.

Hide

Period: 2nd quarter of 2010
Previous Reading: 0.1% q/q, 0.4% y/y
Forecast: -
Actual Reading: -

A comprehensive measure of a Canada's overall production and consumption of goods and services. GDP is a significant report in FX Market, serving as one of the primary indicators of a country's overall economic health.

Robust GDP growth signals a heightened level of economic activity and often a higher demand for the domestic currency. At the same time, economic expansion raises concerns about inflationary pressures which may prompt monetary authorities to increase interest rates. Thus positive GDP readings are generally bullish for the Canadian Dollar, while negative readings are generally bearish.

Most production reports that lead to Canadian GDP are released before the official GDP number. Therefore, actual GDP figures usually confirm expectations. However, an unexpected release can move markets due to the significance of the figure.

Technically, Gross Domestic Product is calculated in the following way:

GDP = C + I + G + (EX - IM)

where
C = private consumption
I = private investment
G = government expenditure
EX = exports of goods and services
IM = imports of goods and services

The headline figures for GDP are the percentage growth rate from the previous quarter and the annualized percentage change in GDP. Prices used are benchmarked to 1997 prices.

Hide