Lots of Eurozone data and news this week, but the “real news” will come from the US

Friday was a busy day for Eurozone data. There was a surprise for Germany when the Wholesale Price Index (WPI), the measure of the price change of goods sold by wholesalers, came in at -0.8% against the forecast 0.2%. The French current account figure also failed to hit the mark; this was released at -€0.4 billion compared to the €0.6 billion expected, and much worse than the €0.8 billion for last month. Italy produced the greatest shock posting year on year growth of 2.7% (forecast to be 0.9% and a previous of -0.3%) in its Industrial Production Index, a measure of changes in output for the manufacturing, mining and utilities sector.

This week we continue to see a steady flow of Eurozone data with Eurozone industrial production data today, tomorrow there is trade balance data, on Wednesday inflation figures and finally on Friday current account information, all of which will give a good overview of the state of the Eurozone economy. But the main attention this week is expected to be on Thursday’s US Federal Open Market Committee statement and federal rate announcement; broad market assumption is that an initial rate hike will take place by the end of this year, or early next year not at this meeting.