Forex News from InstaForex

European Economics Preview: UK Unemployment Data Due

Labor market statistics from the UK and economic confidence from Germany are due on Tuesday, headlining a light day for the European economic news.

At 1.00 am ET, July unemployment data is due from Sweden. The jobless rate stood at 9 percent in June.

At 2.00 am ET, the Office for National Statistics is set to issue the UK unemployment data. The jobless rate is forecast to rise to 4.2 percent in three months to June from 3.9 percent in three months to May.

At 3.00 am ET, consumer price data is due from Hungary. Inflation is forecast to rise to 3.2 percent in July from 2.9 percent in June.

At 5.00 am ET, Germany's ZEW economic confidence survey results are due. The economic sentiment index is forecast to fall to 58.0 in August from 59.3 in July.

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Australia Wage Prices Rise 1.8% On Year In Q2

Wage prices in Australia were up 1.8 percent on year in the second quarter of 2020, the Australian Bureau of Statistics said on Wednesday.

That was shy of expectations for 1.9 percent and down from 2.1 percent in the three months prior.

On a seasonally adjusted quarterly basis, wage prices rose 0.2 percent - also missing forecasts for 0.3 percent and down from 0.5 percent in the previous three months.

Private sector wages gained 0.1 percent on quarter and 1.7 percent on year, while public sector wages climbed 0.6 percent on quarter and 2.1 percent on year.

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European Economics Preview: Germany Final CPI Data Due

Final consumer prices from Germany and unemployment from France are due on Thursday, headlining a light day for the European economic news.

At 1.30 am ET, the French statistical office Insee publishes unemployment data for the second quarter. The jobless rate is seen rising to 8.3 percent from 7.8 percent in the first quarter.

At 2.00 am ET, Destatis is set to publish Germany's final consumer prices for July. According to preliminary estimate, consumer prices fell 0.1 percent on year, following a 0.9 percent rise in June.

At 3.00 am ET, Spain's INE is scheduled to issue final consumer prices for July. Economists expect the statistical office to confirm 0.6 percent annual fall in June. In the meantime, consumer price data is due from the Czech Republic. Inflation is seen easing to 3.1 percent in July from 3.3 percent in June.

At 6.00 am ET, Ireland's consumer price data is due for July. Prices had fallen 0.4 percent annually in June.

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European Economics Preview: Eurozone GDP Data Due

Flash quarterly national accounts data from euro area is due on Friday, headlining a busy day for the European economic news.

At 1.00 am ET, Statistics Finland releases consumer prices for July and economic output for June.

At 2.30 am ET, July producer prices data from Switzerland is due. Prices had decreased 3.5 percent annually in June.

At 2.45 am ET, the French statistical office Insee publishes final consumer prices for July. Inflation is expected to rise to 0.8 percent in July, as initially estimated, from 0.2 percent in June.

At 3.00 am ET, industrial production and retail sales figures are due from Turkey. Economists forecast output to rise 1.1 percent on year in June, reversing a 19.9 percent fall in May.

At 3.30 am ET, Dutch GDP data is due for the second quarter.

At 4.00 am ET, consumer prices and GDP are due from Poland. Economists forecast GDP to fall 9.6 percent sequentially in the second quarter, faster than the 0.4 percent drop in the first quarter.

At 5.00 am ET, Eurostat is set to publish euro area flash GDP estimate for the second quarter. According to preliminary estimate, the currency bloc contracted 12.1 percent.

In the meantime, euro area foreign trade data is also due. The trade surplus is forecast to rise to EUR 12.6 billion in June from EUR 9.4 billion in May.

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Thailand GDP Contracts Sharply In Q2

Thailand's economy contracted sharply in the second quarter amid the coronavirus pandemic, data from the National Economic and Social Development Council, or NESDC, showed on Monday.

Gross domestic product fell 12.2 percent on a yearly basis in the first quarter, after easing by revised 2 percent in the first quarter. Economists had forecast an annual decline of 13.3 percent.

On a quarterly basis, GDP declined 9.7 percent versus a 2.5 percent drop a quarter ago. GDP was expected to fall 11.4 percent. On the expenditure side, data showed that private final consumption expenditure declined by 6.6 percent, while government spending grew 1.4 percent.

Gross fixed capital formation decreased 8 percent. For external demands, exports and imports of goods and services decreased in the second quarter. The government lowered its full-year GDP forecast for 2020 to -7.3 percent to -7.8 percent compared to an earlier estimate of a -5 percent to -6 percent.

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Australia's Leading Index Continue To Signal Recession: Westpac

Australia's leading index remained in deep negative territory in July but the index appeared to have bottomed out in April, Westpac said Wednesday.

The six-month annualized growth rate in the Westpac Melbourne Institute Leading Index, which indicates the likely pace of economic activity relative to trend three to nine months into the future, rose to -4.37 percent in July from -4.43 percent in June.

The economic contraction in Victoria caused by the hard lockdown following the renewed virus outbreak will offset the ongoing recovery in other states, said Westpac.

Wespac expects economic growth to be flat in the September quarter before lifting by 2.8 percent in the December quarter on the assumption that Victoria moves through Stage 4 to Stage 2 and the other states avoid 'second wave' outbreaks.

Looking over the six months since the onset of the Covid-19 pandemic, the index still showed a large, broad-based weakening.

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New Zealand Retail Sales Plummet In Q2 Lockdown

Retail sales values in New Zealand tumbled 15 percent on quarter in the second quarter of 2020 during the Covid-19 lockdown, Statistics New Zealand said on Monday - marking the largest drop on record going back 25 years.

The total volume of retail sales dropped 14 percent on quarter.

Individually, declines were led by food and beverage services, down 40 percent (NZ$1.2 billion); fuel retailing, down 35 percent (NZ$770 million); motor vehicle and parts retailing, down 22 percent (NZ$729 million); and accommodation, down 44 percent (NZ$418 million).

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Japan Inflation Eases In August

Japanese Tokyo inflation eased in August after rising in the previous month, data from the Ministry of Internal Affairs showed on Friday.

The consumer price index increased 0.3 percent year-on-year in August, slower than 0.6 percent rise July. In June, inflation was 0.3 percent.

Core CPI fell 0.3 percent in August, after a 0.4 percent rise in the previous month. Economists had expected a 0.3 percent rise.

On a monthly basis, core prices fell 0.6 percent in August, after a 0.3 percent rise in the prior month. Excluding fresh food and energy, consumer prices fell 0.7 percent monthly, after a 0.3 percent increase in July.

On a seasonally adjusted basis, consumer prices fell 0.4 percent in August, reversing a 0.3 percent rise in the preceding month.

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Australia GDP Slides 7.0% In Q2, Into Recession

Australia's gross domestic product was down a seasonally adjusted 7.0 percent on quarter in the second quarter of 2020, the Australian Bureau of Statistics said on Wednesday.

That missed expectations for a fall of 5.9 percent following the 0.3 percent decline in the three months prior, sending the country into recession.

On a yearly basis, GDP dropped 6.3 percent versus forecasts for a decline of 5.2 percent after rising 1.4 percent in Q1.

Capital expenditure dropped 4.9 percent on quarter after falling 0.8 percent in the previous three months. Final consumption tumbled 8.1 percent on quarter after sinking 0.4 percent in Q1.

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Hong Kong PMI Eases In August - IHS Markit

Private sector business conditions in Hong Kong continued to worsen in August, and at a faster rate, the latest survey from IHS Markit revealed on Thursday with a PMI score of 44.0.

That's down from 44.5 in July and it moves farther beneath the boom-or-bust line of 50 that separates expansion from contraction.

Individually, output and new orders fell as faster rates, while supply chains remained under pressure. Business expectations remained negative.

Further tightening of virus-fighting measures, including new limits on the size of public gatherings, dealt another blow to the private sector, with retail, entertainment and food establishments hit particularly hard.

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PHILIPPINES INFLATION CLIMBS 2.4% ON YEAR IN

Consumer prices in the Philippines were up 2.4 percent on year in August, the National Statistics Office said on Friday - shy of expectations for 2.8 percent and down from 2.7 percent in July.

On a monthly basis, inflation eased 0.2 percent after rising 0.5 percent in the previous month.

Core CPI gained an annual 3.1 percent, slowing from 3.3 percent a month earlier.

The bureau also said that industrial production in the Philippines plummeted 14.8 percent on year in August after sinking 16.0 percent in July.

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EUROPEAN ECONOMICS PREVIEW: GERMANY INDUSTRIAL OUTPUT DATA DUE

Industrial production from Germany is due on Monday, headlining a light day for the European economic news.

At 2.00 am ET, Destatis is slated to issue Germany's industrial output data for July. Economists forecast production to grow 4.7 percent on month, slower than the 8.9 percent increase in June.

In the meantime, industrial output from Norway and foreign trade figures from Finland are due.

At 2.45 am ET, France current account data for July is due.

At 3.00 am ET, the Czech Statistical Office is scheduled to publish industrial production and foreign trade figures for July. Industrial output is expected to fall 7.2 percent on year, smaller than the 11.9 percent decrease in June.

Half an hour later, the UK Halifax house price data is due.

At 4.30 am ET, Eurozone Sentix investor confidence survey data is due. The investor sentiment index is seen at -10.5 in September versus -13.4 in August.

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EUROPEAN ECONOMICS PREVIEW: GERMANY FOREIGN TRADE DATA DUE

Foreign trade data from Germany and revised GDP data from euro area are due on Tuesday, headlining a light day for the European economic news. At 2.00 am ET, Destatis is slated to issue Germany's foreign trade data for July. Exports are forecast to grow 5 percent on month and imports to grow 3.3 percent. At 2.45 am ET, France's external trade data is due for July. The deficit totaled EUR 8 billion in June.

At 3.00 am ET, foreign trade figures are due Hungary and Austria. Hungary's trade surplus is seen at EUR 235 million in July.

Half an hour later, Statistics Sweden publishes industrial production and new orders data.

At 4.00 am ET, Italy's Istat releases retail sales figures for July. Sales had increased 12.1 percent on month in June.

At 5.00 am ET, Eurostat publishes euro area revised GDP data. The statistical office is expected to confirm 12.1 percent sequential fall in the second quarter.

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NEW ZEALAND Q2 MANUFACTURING VOLUME SINKS 12%

The volume of total manufacturing sales in New Zealand was down 12 percent on year in the second quarter of 2020, Statistics New Zealand said on Wednesday.

The value of manufacturing sales dropped an annual 9.5 percent, while the volume of total manufacturing finished goods stocks fell 2.1 percent.

The total wholesale trade sales value declined 10 percent on year toNZ$2.7 billion, while the total value of wholesales trade stocks was down 1.6 percent on year or NZ$206 million to NZ$13 billion.

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JAPAN JULY CORE MACHINE ORDERS CLIMB 6.3% ON MONTH

The total value of core machine orders in Japan gained a seasonally adjusted 6.3 percent on month in July, the Cabinet Office said on Thursday - coming in at 751.3 billion yen.

That beat expectations for an increase of 1.9 percent following the 7.6 percent decline in June. On a yearly basis, core machine orders dropped 16.2 percent - also beating forecasts for a fall of 18.3 percent after tumbling 22.5 percent in the previous month.

Government orders plummeted 30.4 percent on month and 18.5 percent on year in July, while orders from overseas gained 13.8 percent on month and sank 25.3 percent on year.

Orders from agencies rose 2.3 percent on month and dropped 15.0 percent on year.

For the third quarter of 2020, core machine orders are forecast to have fallen 1.9 percent on quarter and 15.5 percent on year.

The total value of machinery orders received by 280 manufacturers operating in Japan - including volatile ones for ships and those from electric power companies - increased by 7.0 percent in July from the previous month and fell 19.4 percent on year.

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Will the US dollar weaken against major currencies in September?

Almost all majors form reversal patterns relative to the US dollar. EUR/USD and NZD/USD have already created conditions for purchases. You should pay attention to the USD/CAD pair which already allows you to open deals to buy the Canadian dollar. When looking at the dollar index, it is important to note that it is trading within the accumulation zone. If all majors continue to form reversal patterns, the index will be retested by the WCZ 1/2 92.68-92.59. To form a reversal pattern on the index, you will need to push through this zone and fix it below it. While the index is trading within the correction, it is worth partially fixing purchases for the main currency pairs. The probability of corrective movements and a slight strengthening of the dollar is possible after a repeated test of the control zone. The model is planned to be implemented within the current week.

Strong demand in the WCZ 1/2 test indicates that major players are interested in this mark. The second test will be crucial for the movement in the second half of September. Those who trade the index, you need to prepare for re-entering the buy or the hold already open. For those who work with majors, it is necessary to take this into account when partially fixing profit transactions.

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AUSTRALIA HOUSE PRICES DROP IN Q2

Australia's house prices declined for the first time in a year in the second quarter, data from the Australian Bureau of Statistics showed Tuesday.

House prices fell 1.8 percent on a yearly basis in the June quarter, reversing a 1.6 percent rise in March quarter. This was the first decline since June 2019.

The falls in residential property prices were led by the Sydney and Melbourne property markets.

Head of Prices Statistics at the ABS, Andrew Tomadini, said "All capital cities apart from Canberra recorded falls in property prices in the June quarter 2020".

On a yearly basis, house prices were up 6.2 percent with rises in all capital cities except Perth and Darwin.

"The number of residential property transactions fell substantially in the eight capital cities during the June quarter 2020, due to the effects of COVID-19 on the property market", said Tomadini.

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EUROPEAN ECONOMICS PREVIEW: UK CONSUMER PRICE DATA DUE

Consumer and producer prices from the UK are due on Tuesday, headlining a light day for the European economic news.

At 2.00 am ET, the Office for National Statistics is set to publish UK consumer and producer prices for August. Inflation is forecast to ease to 0.1 percent from 1 percent in July.

Economists forecast UK output prices to fall 0.7 percent annually, following a 0.9 percent decline a month ago. Likewise, the decline in input prices is expected to slow to 4.9 percent from 5.7 percent.

At 3.00 am ET, the Czech Statistical Office issues producer prices for August. Prices are expected to drop 0.1 percent on year.

At 4.30 am ET, the Office for National Statistics releases UK house price data for June.

Half an hour later, Eurostat publishes external trade data for July. The euro area trade surplus is seen at EUR 12.6 billion versus EUR 21.2 billion in June.

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JAPAN OVERALL INFLATION SLOWS TO 0.2% ON YEAR IN AUGUST

Overall nationwide consumer prices in Japan were up 0.2 percent on year in August, the Ministry of Internal Affairs and Communications said on Friday - in line with expectations and slowing from 0.3 percent in July.

Core CPI, which excludes volatile food costs, sank an annual 0.4 percent - again matching forecasts following the flat reading in the previous month.

Individually, prices were down for fuel, education and recreation - while prices were higher for food, housing, furniture, clothing and medical care.

On a seasonally adjusted monthly basis, overall inflation slipped 0.1 percent and core CPI dropped 0.4

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JAPAN LEADING INDEX DATA DUE ON MONDAY

Japan will on Monday release final July numbers for its leading and coincident economic indexes, highlighting a light day for Asia-Pacific economic activity.

The leading index is tipped to see a score of 86.9, up from 83.8 previously - while the coincident is pegged at 76.2, up from 74.4.

Singapore will release August numbers for import and export prices and producer prices. In July, import prices were up 7.5 percent on year and export prices tumbled an annual 7.0 percent. Producer prices were down 8.5 percent on year.

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SINGAPORE PRODUCER PRICES DECLINE AT FASTER PACE

Singapore producer prices declined at a faster pace in August on a sharp fall in oil cost, data from the Department of Statistics showed Tuesday.

Producer prices decreased 9.3 percent on a yearly basis in August, following a 6.4 percent drop in July. Oil and non-oil indices were down 35.6 percent and 5.4 percent, respectively.

Month-on-month, producer prices dropped 1.2 percent versus a 0.1 percent fall in July.

Another report from the statistical office showed that import prices slid 6.8 percent annually, extending the 7.3 percent fall in July. The oil index dropped 25.3 percent and non-oil prices slid 1.1 percent.

On a monthly basis, import prices fell 0.1 percent, in contrast to the 1.9 percent rise in July.

Data showed that export prices decreased 0.6 percent on month taking the annual fall to 8.2 percent in August.

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UK SHOP PRICES CONTINUE TO FALL IN SEPTEMBER:

UK shop prices continued to decrease in September on falling non-food prices, data from the British Retail Consortium, or BRC, revealed Wednesday.

The shop price index dropped 1.6 percent year-on-year, the same pace of decrease as seen in August. Non-food prices decreased 3.2 percent in September compared to a decline of 3.4 percent in August. At the same time, food inflation eased to 1.2 percent from 1.3 percent in August. Fresh food inflation held steady at 0.2 percent.

Retailers are cutting prices in order to encourage further spending where sales are yet to pick up, Helen Dickinson, chief executive at BRC, said. In addition, September saw the lowest rate of fresh food inflation since 2017, which has been mostly driven by the continued availability of fresh, local food produce.

Mike Watkins, Head of Retailer and Business Insight, Nielsen, said "Looking ahead we can expect shop price inflation to remain at current low levels for the next quarter."

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PHILIPPINES MANUFACTURING PMI MOVES TO 50.1 IN SEPTEMBER - IHS MARKIT

The manufacturing sector in the Philippines moved into expansion in September, the latest survey from IHS Markit showed on Thursday with a manufacturing PMI score of 50.1.

That's up from 47.3 in August, and it moves above the boom-or-bust line of 50 that separates from expansion.

Individually, new orders expanded for the first time since February, while production declined only marginally. Business sentiment improved to a seven-month high.

Production volumes fell for the third month running in September, with firms often indicating that ongoing COVID-19 restrictions continued to hamper activity.

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EUROPEAN ECONOMICS PREVIEW: EUROZONE CONSUMER PRICE DATA DUE

Flash consumer price data from euro area is due on Friday, headlining a light day for the European economic news. At 3.00 am ET, Spain's unemployment data for September is due from the Ministry of Labor, Migration and Social Security. The number of unemployed rose by 29,780, or 0.79 percent, in August.

At 4.00 am ET, Norway's unemployment data is due. The jobless rate is expected to fall to 4 percent in September from 4.3 percent in August.

At 5.00 am ET, Eurostat is slated to release euro area consumer prices for September. Economists forecast consumer prices to fall 0.2 percent annually, the same pace of fall as seen in August.

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EUROPEAN ECONOMICS PREVIEW: EUROZONE FINAL PMI, INVESTOR CONFIDENCE DATA DUE

Final Purchasing Managers' survey results, investor confidence and retail sales from euro area are due on Monday, headlining a busy day for the European economic news.

At 3.00 am ET, consumer and producer prices from Turkey and retail sales from Hungary are due. Turkish inflation is forecast to rise to 12.13 percent in September from 11.77 percent in August.

At 3.15 am ET, Spain's services PMI data is due. The index is expected to fall to 46.3 in September from 47.7 in August.

At 3.45 am ET, composite PMI figures from Italy are due. Economists forecast the services indicator to drop to 46.6 from 47.1 in August.

Thereafter, final PMI reports are due from France and Germany at 3.50 and 3.55 am ET, respectively.

At 4.00 am ET, IHS Markit releases euro area composite PMI survey data. The score is seen at 50.1 in September, unchanged from the flash estimate.

Half an hour later, UK IHS Markit/CIPS composite PMI data is due. The UK composite output index is forecast to fall to 55.7 in September, as initially estimated, from 59.1 in August.

In the meantime, Eurozone Sentix investor confidence survey results are due. Economists expect the index to fall to -9.5 in October from -8.0 in September. At 5.00 am ET, Eurostat is scheduled to issue euro area retail sales data for August. Sales are forecast to climb 2.4 percent on month, in contrast to a 1.3 percent drop in July.

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EUROPEAN ECONOMICS PREVIEW: GERMANY FACTORY ORDERS DATA DUE

Factory orders and construction Purchasing mangers' survey data from Germany are due on Tuesday, headlining a light day for the European economic news.

At 2.00 am ET, Destatis is scheduled to issue Germany's factory orders data for August. Economists forecast orders to grow 2.6 percent on month, following a 2.8 percent rise in July.

At 3.00 am ET, industrial output figures are due from Hungary. Output is expected to fall 3.3 percent on year in August, after easing 8.1 percent in July.

At 3.30 am ET, Statistics Sweden releases industrial production and new orders for August. In the meantime, Germany's IHS Markit construction PMI data is due.

At 4.30 am ET, IHS Markit is set to issue UK construction PMI data for September. The index is seen at 54.0 versus 54.6 in August.

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HONG KONG PRIVATE SECTOR PMI CLIMBS TO 47.7 IN SEPTEMBER - IHS MARKIT

The private sector in Hong Kong continued to contract in September, albeit at a slower pace, the latest survey from IHS Markit showed on Wednesday with a PMI score of 47.7.

That's up from 44.0, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.

Individually, output and new orders fell at slower rates, while the was job growth for the first time in three months. Business sentiment was at its least negative since June 2019.

Supply chains remained under pressure as limited freight capacity reportedly contributed to delivery delays.

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JAPAN HAS Y2,102.8 BILLION CURRENT ACCOUNT SURPLUS IN AUGUST

Japan posted a current account surplus of 2,102.8 billion yen in August, the Ministry of Finance said on Thursday - down 1.5 percent on year.

That exceeded expectations for a surplus of 1,983.7 billion yen following the 1,468.3 billion yen surplus in July.

Exports were down 15.5 percent on year at 5.124 trillion yen, while imports sank an annual 22.0 percent to 4.711 trillion yen.

The trade surplus was 413 billion yen, up from 137.3 billion yen in the previous month.

The capital account saw a deficit of 9.3 billion yen and the financial account had a surplus of 560.0 billion yen.

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EUROPEAN ECONOMICS PREVIEW: UK GDP DATA DUE

Monthly GDP estimate, industrial production and foreign trade figures are due from the UK on Friday, headlining a light day for the European economic news.

At 2.00 am ET, the Office for National Statistics is scheduled to issue UK monthly GDP data. The economy is forecast to grow 4.6 percent on month in August, slower than the 6.6 percent increase in July. Industrial production and foreign trade figures are also due from the UK.

Industrial output is expected to climb 2.5 percent on month in August. The visible trade deficit is seen widening to GBP 9 billion from GBP 8.65 billion in July.

In the meantime, consumer prices from Norway and foreign trade from Denmark are due. At 2.45 am ET, the French statistical office Insee releases industrial production data for August. Economists forecast production to advance 1.7 percent on month, slower than the 3.8 percent increase posted in July.

At 3.00 am ET, foreign trade figures from Hungary and Austria are due.

At 4.00 am ET, Italy's Istat publishes industrial production for August. Economists forecast output to grow 1.3 percent on month, following a 7.4 percent rise in July. At 5.00 am ET, consumer prices and industrial production reports are due from Greece.

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EUROPEAN ECONOMICS PREVIEW: UK UNEMPLOYMENT DATA DUE

Labor market statistics from the UK and economic confidence from Germany are due on Tuesday, headlining a light day for the European economic news.

At 2.00 am ET, the Office for National Statistics releases UK unemployment data for August. The jobless rate is forecast to rise to 4.3 percent in three months to August from 4.1 percent in the preceding period.

In the meantime, final consumer price data is due from Germany. According to preliminary estimate, consumer prices decreased 0.2 percent on year in September after staying flat in August.

At 3.00 am ET, industrial production from Turkey and Hungary are due. Turkey's industrial output is seen rising 3 percent in August after climbing 4.4 percent in July.

Half an hour later, Statistics Sweden publishes consumer price figures for September. Inflation is seen at 0.6 percent versus 0.8 percent in August.

At 5.00 am ET, Germany's ZEW economic confidence survey results are due. Economists forecast the economic sentiment index to fall to 73.0 in October from 77.4 in September.

At 8.30 am ET, the International Monetary Fund is set to publish the World Economic Outlook report.

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CHINA'S INFLATION SLOWS IN SEPTEMBER; PPI CONTINUES TO FALL

China's consumer price growth slowed in September on easing food price inflation and producer prices continued to ease, data from the National Bureau of Statistics showed Thursday.

Consumer prices advanced 1.7 percent on a yearly basis in September, slower than the 2.4 percent increase seen in August. This was also slower than the economists' forecast of 1.8 percent.

At the same time, core inflation, which excludes food and energy prices, held steady at 0.5 percent in September.

Driven by a slowdown in pork price inflation, food prices grew 7.9 percent following 11.2 percent rise in August. Pork prices grew 25.5 percent but much slower than the 52.6 percent increase logged in the previous month.

On a monthly basis, consumer prices gained 0.2 percent versus a 0.4 percent rise a month ago. Another report from NBS showed that producer prices were down 2.1 percent annually after easing 2 percent in August. Economists had forecast an annual decrease of 1.8 percent.

With infrastructure-led stimulus still being ramped up and consumption rebounding, demand-side pressures on prices will probably strengthen in the coming months, pushing up underlying inflation, Julian Evans-Pritchard and Sheana Yue, economists at Capital Economics, said.

However, the economists noted that the rebound in core consumer price inflation will still leave it relatively subdued and food price inflation looks set to drop back further in the near-term as pork supply continues to recover from last year's African swine fever outbreak.

The benign outlook for inflation means it is unlikely to be a major driver of policy decisions in the coming quarters, the economists added.

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EUROPEAN ECONOMICS PREVIEW: EUROZONE CONSUMER PRICES, FOREIGN TRADE DATA DUE

Final consumer prices and foreign trade figures from euro area are due on Friday, headlining a light day for the European economic news.

At 2.00 am ET, the European Automobile Manufacturers Association is set to issue Europe's new car registrations data. Sales had declined 18.9 percent annually in August.

At 3.00 am ET, the Czech Statistical Office releases producer prices for September. Prices are forecast to drop 0.7 percent annually after falling 0.5 percent in August.

At 4.00 am ET, Italy's final consumer price data is due. Prices are forecast to fall 0.5 percent annually, as initially estimated in September.

At 5.00 am ET, Eurostat is scheduled to publish euro area final consumer prices and foreign trade data. According to flash estimate, consumer prices dropped 0.3 percent on year in September, following a 0.2 percent decrease in August.

The euro area trade surplus is forecast to fall to EUR 15.1 billion in August from EUR 27.9 billion in July.

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CHINA GDP EXPANDS 4.9% ON YEAR IN Q3

China's gross domestic product was up 4.9 percent on year in the third quarter of 2020, the National Bureau of Statistics said on Monday - missing forecasts for a gain of 5.2 percent but still up from 3.2 percent in the three months prior.

On a quarterly basis, GDP rose 2.7 percent - again shy of expectations for 3.2 percent and down sharply from the 11.5 percent gain in the previous three months.

The bureau also said that industrial production jumped 6.9 percent on year in September - beating forecasts for a gain of 5.8 percent and up from 5.6 percent in August.

Retail sales climbed an annual 3.3 percent, exceeding expectations for a rise of 1.8 percent following the 0.5 percent gain in the previous month.

Fixed asset investment was up 0.8 percent year to date in September, matching forecasts following the 0.3 percent fall a month earlier.

The jobless rate came in at 5.4 percent in September, down from 5.6 percent in August.

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AUSTRALIA'S LEADING INDEX SIGNALS ROBUST GROWTH MOMENTUM

Australia's leading index improved in September suggesting that momentum continued to show a significant improvement consistent with the economy moving out of recession, data from Westpac showed Wednesday.

The six-month annualized growth rate in the Westpac Melbourne Institute Leading Index, which indicates the likely pace of economic activity relative to trend three to nine months into the future, rose to -0.48 percent in September from -2.28 percent in August.

The leading index growth rate has lifted a whopping 5.11 percentage points since April, data showed.

The main components driving the improvement have been US industrial production, the S&P/ASX 200, aggregate monthly hours worked, the Westpac-MI Consumer Expectations index, and the Westpac-MI "Unemployment Expectations index.

However, these gains have been partially offset by a bigger drag from commodity prices and the dwelling approvals.

Westpac upgraded its growth outlook for 2021 to 2.8 percent and that for 2022 to 3.5 percent.

Key factors behind the improvement are a boost to consumer demand, as households spend around 50 percent of the personal tax cuts, and a lift in business investment in response to the accelerated depreciation allowances.

Bill Evans, chief economist at Westpac expects the cash rate, the three year bond target rate and the rate on the Term Funding Facility to be reduced from 0.25 percent to 0.10 percent at the upcoming meeting on November 3.

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EUROPEAN ECONOMICS PREVIEW: GERMANY IFO BUSINESS CONFIDENCE DATA DUE

Flash Purchasing Managers' survey data from euro area and the UK are due on Friday, headlining a busy day for the European economic news.

usiness sentiment survey data from Germany is due on Monday, headlining a light day for the European economic news.

At 2.00 am ET, Statistics Finland releases producer and import prices for September.

At 4.00 am ET, the Turkish Statistical Institute is slated to issue manufacturing sentiment data for October.

In the meantime, Spain's INE issues producer prices and unemployment data. The jobless rate is forecast to rise to 16.7 percent in the third quarter from 15.33 percent in the second quarter.

At 5.00 am ET, Germany's ifo business confidence survey results are due. Economists forecast the business sentiment index to drop to 93.0 in October from 93.4 in the previous month.

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CHINA'S INDUSTRIAL PROFITS RISE FOR FIFTH MONTH

China's industrial profits increased for the fifth straight month in September, data from the National Bureau of Statistics showed Tuesday.

Industrial profits grew 10.1 percent on a yearly basis but slower than the 19.1 percent increase posted in August. This was the fifth consecutive rise.

The statistical office cited falling factory gate prices and rising raw material prices as major reason for the slowdown in industrial profits.

During January to September period, industrial profits declined 2.4 percent from the same period last year.

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UK CAR PRODUCTION FOR SEPTEMBER LOWEST IN 25 YEARS: SMMT

UK car production for the month of September reached its lowest for 25 years as demand from foreign markets remained negative, data from the Society of Motor Manufacturers and Traders showed Thursday.

Car manufacturing output slid 5 percent on a yearly basis to 114,732 units in September, the weakest level since 1995.

Production for foreign markets decreased 9.7 percent to 87,533 units as shipments to key overseas destinations namely China, the EU and US decreased from last year.

Meanwhile, output for domestic market advanced 14.5 percent in September.

The latest independent outlook forecasts factories to make fewer than 885,000 cars this year, the first time volumes will have dipped below one million since 2009.

With countries across Europe experiencing a surge in Covid-19 cases, and with local lockdowns already in place across many parts of the UK and beyond, the final quarter of 2020 looks increasingly challenging, the lobby said.

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NEW ZEALAND CONSUMER CONFIDENCE IMPROVES IN OCTOBER

New Zealand consumer sentiment improved in October after easing for three straight months, survey data from ANZ showed on Friday.

The ANZ-Roy Morgan consumer confidence index rose to 108.7 in October from 100.0 in September.

After three consecutive falls, consumers' perceptions of their current financial situation advanced 5 points to +3.

A net 28 percent of consumers expect to be better off financially this time next year, which was up 6 points. A net 11 percent think it was a good time to buy a major household item, which was up 12 points.

Perceptions regarding the next year's economic outlook climbed 14 points to -21 percent in October. The five-year outlook rose 7 points to +22 percent.

House price inflation expectations increased to 4.6 percent. Likewise, general inflation expectations rose 0.6 percentage points to 3.8 percent, the highest since February.

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AUSTRALIA BUILDING PERMITS SPIKE IN SEPTEMBER

The total number of building permits issued in Australia jumped a seasonally adjusted 15.4 percent on month in September, the Australian Bureau of Statistics said on Monday - coming in at 15,827.

That beat forecasts for an increase of 1.3 percent following the 2.2 percent decline in August. Consents were up 8.8 percent on year.

The rise was driven by private sector dwellings excluding houses, which increased by 23.4 percent in September, but remains 12.1 percent lower than at the same time last year. Private sector houses rose 9.7 percent, driven by strength across all states and territories, to be 20.7 percent higher than at the same time last year.

The value of total building approved fell 17.0 percent in September, in seasonally adjusted terms. The value of non-residential building fell 36.7 percent, after rising 40.0 percent in August.

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PHILIPPINES POST $1.707 BILLION TRADE DEFICIT IN SEPTEMBER

The Philippines saw a merchandise trade deficit of $1.707 billion in September, the Bureau of Statistics said on Wednesday.

That follows the $2.075 billion shortfall in the previous month.

Imports were down 16.5 percent in year after tumbling an annual 22.6 percent in August.

Exports picked up 2.2 percent on year after sinking 18.6 percent a month earlier.

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