| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:30 | Switzerland | Producer & Import Prices, m/m | August | 0% | 0.1% | 0.2% |
| 06:30 | Switzerland | Producer & Import Prices, y/y | August | -1.7% | -1.4% | -1.2% |
| 09:00 | Eurozone | Trade balance unadjusted | July | 21.7 | 14.9 | 21.2 |
GBP appreciated against most of the other major currencies in the European session on Monday as investors waited for the release of the UK inflation data for August and the announcement of the Bank of England’s rate decision later this week.
Investors will receive Britain’s August inflation figures on Wednesday - just one day before the BoE's September policy meeting. Economists expect the data will show that the headline consumer price index (CPI) rose 2.2% YoY last month, the same pace as in July, and the core CPI, increased 3.5% YoY, accelerating from 3.3% YoY in the previous month.
If actual CPI data come in line with expectations, confirming the headline CPI’s persistence and a rebound in the core inflation measure, this will cement the case for the British central bank to refrain from another rate reduction on Thursday after a 25 basis-point rate cut in August.
According to Reuters, markets are now seeing a 38% probability of a 25-basis-point cut in the BoE’s Bank Rate this week.
Market participants will thoroughly assess the BoE’s policy statements and the comments of its governor Andrew Bailey for signals on further rate cuts.