| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:00 | United Kingdom | Nationwide house price index | August | 0.3% | 0.2% | -0.2% |
| 06:00 | United Kingdom | Nationwide house price index, y/y | August | 2.1% | 2.9% | 2.4% |
| 06:45 | France | CPI, y/y | August | 2.3% | 1.8% | 1.9% |
| 06:45 | France | GDP, q/q | Quarter II | 0.3% | 0.3% | 0.2% |
| 06:45 | France | CPI, m/m | August | 0.2% | 0.5% | 0.6% |
| 07:55 | Germany | Unemployment Change | August | 17 | 16 | 2 |
| 07:55 | Germany | Unemployment Rate s.a. | August | 6% | 6% | 6% |
| 09:00 | Eurozone | Unemployment Rate | July | 6.5% | 6.5% | 6.4% |
| 09:00 | Eurozone | Harmonized CPI, Y/Y | August | 2.6% | 2.2% | 2.2% |
| 09:00 | Eurozone | Harmonized CPI ex EFAT, Y/Y | August | 2.9% | 2.8% | 2.8% |
| 09:00 | Eurozone | Harmonized CPI | August | 0% | 0.2% | 0.2% |
USD traded flat against other major currencies in the European session on Friday as investors waited for the release of the U.S. July report on income and expenditures, which includes measures of inflation favoured by the Federal Reserve - the personal consumption expenditures (PCE) price index and core PCE price index - later in the day.
The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, increased 0.04% from the previous close to 101.39.
Economists expect the report will show that the headline PCE price index increased to 2.6% YoY last month, slightly rising from 2.5% You in June. The core measure, which excludes food and energy, is also anticipated to show a marginal acceleration - to 2.7% YoY from 2.6% YoY in the previous month.
If the PCE price indicators reveal a sudden rebound in price growth, this may prompt markets to revise their bets on the path of interest rates in the U.S.
According to CME FedWatch, markets are now expecting the Fed’s interest rates to be decreased by at least 100 basis points by the end of 2024. This implies that one of the three U.S. central bank meetings left this year could bring a more aggressive 50-basis-point rate cut. For the Fed’s meeting next month, markets are seeing a 67.5% probability of a 25-basis-point rate reduction and a 32.5% probability of a 50-basis-point cut.