| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:30 | Switzerland | Producer & Import Prices, m/m | September | 0.2% | 0.1% | -0.1% |
| 06:30 | Switzerland | Producer & Import Prices, y/y | September | -1.2% | | -1.3% |
GBP appreciated against most of its major rivals in the European session on Monday as investors prepared for the release of the crucial UK reports on the labour market situation and inflation later this week, which could impact markets’ expectations of the Bank of England's policy easing.
The pound held steady against USD and EUR but rose against the rest of the other major currencies.
The Office for National Statistics (ONS) will publish the UK’s jobs data for the three months to August on Tuesday. Economists expect the data will show that Britain’s unemployment rate remained unchanged at 4.1% in June through August, while the number of people employed in the UK jumped by 250,000, following a 265,000 climb in May to July and regular pay increased by 4.9% YoY, decelerating from 5.1% YoY in the previous three-month period.
The jobs data will be followed by the release of inflation figures for September on Wednesday, which are expected to show that the headline inflation rate declined from 2.2% YoY in August to 1.9% YoY last month and the core measure fell from 3.6% YoY to 3.5% YoY.
The BoE governor Andrew Bailey indicated last week that the central bank could become a “bit more aggressive” in lowering interest rates if inflation in Britain continues to cool down.
If this week’s UK reports reveal a deceleration in price pressures, specifically in costs of services, as economists predict, this will justify the case for the BoE to adopt a more assertive stance on rate cutting.