USD

Today sees the release of key US inflation data, something the FED will be watching closely. We’ve seen the US inflation figure well above the 2% target for some time now and investors will look for today’s data to spur the FED into taking some action at next month’s meeting.

US Core CPI (MoM) (Aug) will be released at 1.30pm, with the market expecting a reading of 0.3%. CPI for August will also be released, with the market expecting a reading of 0.4%, down from a previous 0.5% last month. The key figure will be US Core CPI (YoY) (Aug). The reading it set to come in at 5.3%, down from a previous 5.4%.

With all FED members currently on a blackout period before the next FED meeting we won’t get any comments from vote holding members. This being said, it will be interesting to see if price pressures do begin to retreat and how the FED will use this to make their policy decisions.

GBP

Across the pond, this morning saw the Office of National Statistics release their latest UK jobs report. The report showed the number of employees on UK payrolls had now recovered to those levels seen before the pandemic. Job vacancies were also at all time highs rising above 1 million for the first time. Unemployment also fell from 4.7% to 4.6%.

As the furlough schemes continues to wind down, employment data will be key for the Bank of England’s policy decisions over the coming months. This jobs report does however show the UK job market moving in the right direction.

Key announcements

13:30 – US Core CPI (MoM) (Aug)

13:30 – US CPI (MoM) (Aug)

13:30 – US Core CPI (YoY) (Aug)

13:30 – US CPI (YoY) (Aug)