Week Ahead: Economic Indicators (Europe)

Hey, Traders!
For the December 8th week, here is a list of all of the major economic indicators being released during the EU Session, with a brief synopsis of what they represent and what to possibly expect from the markets in reaction.

Monday
German Industrial Production
German industrial production measures the total output of factories, mines, and utilities in Germany. It shows how much goods and materials Germany’s industrial sector is producing and is an important indicator of the country’s economic health.
What to Expect
If German industrial production comes in above the forecast, it signals stronger economic activity and is likely positive for the euro and European markets; if it falls short, it may raise concerns about growth and weigh on sentiment.

Thursday
Swiss Interest Rate
The SNB Release the decided interest rate for Switzerland.
What to Expect
Higher interest rates tend to slow economic activity; lower interest rates stimulate economic activity. Either way, interest rates influence the sales environment. In the consumer sector, few homes or cars will be purchased when interest rates rise. Furthermore, interest rate costs are a significant factor for many businesses, particularly for companies with high debt loads or who have to finance high inventory levels. This interest cost has a direct impact on corporate profits. The bottom line is that higher interest rates are bearish for the stock market, while lower interest rates are bullish.

OPEC Monthly Report

Friday
UK Industrial Production
UK industrial production measures the total output of factories, mines, and utilities in the UK. It shows how many goods and materials the UK’s industrial sector is producing and is an important indicator of the country’s economic health.
What to Expect
If UK industrial production comes in above the forecast, it signals stronger economic activity and is likely positive for the Pound and British markets; if it falls short, it may raise concerns about growth and weigh on sentiment.

German, French CPI
The consumer price index (CPI) is a measure of the average price level of a fixed basket of goods and services purchased by consumers. Monthly and annual changes in the CPI represent the main rates of inflation. The national CPI is released alongside the HICP, Eurostat’s harmonized measure of consumer prices. A flash estimate was released for the first time in January 2016 and is now published towards the end of each reference month.
What to expect:
A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.