Since today, Tuesday, is a rather slow week in terms of economic news releases, we thus turn our attention and shed light to onto the events that lie ahead.
Tomorrow Wednesday, attention will fall upon the latest CPI print from China in the far east and early in the Asian session, which would highlight whether the Red Dragon managed to traverse away from the recent deflationary rout. Furthermore, producers’ prices will be also updated, yet a deeper contraction due to sluggish demand appears to be the base case scenario for the nation. Moving away from the East and towards the West, traders will inevitably be drawn to the respective, US PPI print for August, where a modest drop to 0.3% is expected to come through.
Thursday, is the most data packed day of this week and traders are bracing for the European Central Bank’s interest rate decision for its September meeting, (on hold scenario is broadly expected), the respective decision from the Central Bank of Turkey, OPEC’s latest monthly report and probably the most meaningful event of the day, which is the latest CPI print from the United States for the month of August, as the report could be decisive blow to the Federal Reserve’s cautious policy approach.
Finally, Friday, market participants will most likely seek out the UK’s GDP print for July, finalized German, French and Spanish HICP updates and lastly, the University of Michigan’s leading indicator updates, of the inflation expectations, current conditions and consumer sentiment categories for September.
Technical Analysis
NASDAQ Chart – Nasdaq futures near fresh record ahead of US PPI and CPI data
Resistance: 23950 (R1), 24600 (R2), 25500 (R3)
Support: 22750 (S1), 22235 (S2), 21500 (S3)