Talking Points:

– The economic calendar is heavier this week, particularly for the US Dollar which will see the always-important US labor market report on Friday.

– UK data take a backseat to their Euro-Zone counterparts in the days ahead; Euro-Zone inflation figures on Wednesday will draw attention.

– Asia-Pacific region rather quiet this week, although that will change once the calendar flips to September.

08/30 Wednesday | 09:00 GMT | Euro-Zone Consumer Price Index (AUG)

Inflation remains stubbornly low in the Euro-Zone, despite the potential for near-term advances on the headline CPI figures. European Central Bank President Mario Draghi, in remarks at the Federal Reserve’s Jackson Hole Economic Policy Symposium last week, made clear that persistently low inflation may cause the central bank to be more cautious in its stimulus withdrawal. Headline inflation is due at +1.4% from +1.3% (y/y), while core inflation is due in at +1.3% from +1.2% (y/y). A miss here would refocus attention back on Euro strength and how it may be getting in the way of the ECB.

Pairs to Watch: EUR/GBP, EUR/JPY, EUR/USD

08/31 Thursday | 12:30 GMT | CAD Gross Domestic Product (2Q)

The first look at Canadian Q2’17 GDP growth is expected to show further signs of strong growth, with June forecasts looking for +3.7% (annualized) and at +4.1% (y/y). On balance, these wouldn’t be improvements over the prior readings: year-over-year growth was +4.6% through May; and annualized growth was +3.7% in Q1’17. Nevertheless, these are the types of data that would suggest that the Bank of Canada is right to be thinking about hiking rates by the end of the year, which should prove supportive of the Canadian Dollar.

Pairs to Watch: CAD/JPY, USD/CAD

09/01 Friday | 12:30 GMT | USD Change in Nonfarm Payrolls & Unemployment Rate (AUG)