Inflation data coming from Canada, UK and Japan

Economic calendar summary

Economic data this week will provide insight into global inflation as CPI data arrives from Canada, Japan and the UK. British inflation remains highest of the three at 6.7% last month. GBP/USD could see movement from under 1.2200 as UK employment data releases Tuesday ahead of inflation on Wednesday.

More insight into US monetary policy could come from Fed Chair Powell on Thursday ahead of November's FOMC meeting. He will deliver an address and answer questions that may clarify the Fed's stance on another rate hike in 2023.

Unemployment Rate - UK

Time: 2:00am ET Tuesday, October 17th

Previous: 4.3%

Expected: 4.3%

August unemployment in the UK is expected to remain at a yearlong high of 4.3% on Tuesday, releasing with many other labor market statistics. July's employment change is slated to be negative for the third consecutive month while weekly earnings are expected to continue growing above 8%.

Inflation Rate - Canada

Time: 8:30am ET Tuesday, October 17th

Previous: 4.0%

Expected: 4.0%

Inflation in Canada looks to stay at 4% for September after trending higher since June's low at 2.8%. A reading over 4% may force the Bank of Canada into further tightening this year while a softer number could mean no further action is required. USD/CAD may react if the reading influences these interest rate probabilities in either direction.

Inflation Rate - UK

Time: 2:00am ET Wednesday, October 18th

Previous: 6.7%

Expected: 6.6%

Expected to lower slightly, UK inflation still remains high above 6%. Combined with employment data the day prior, an updated picture of economic health in the UK should become clearer on Wednesday; any unexpected information could cause price action in GBP/USD which currently sits above 1.2150.

Fed Chair Powell Speech - US

Time: 12:00pm ET Thursday, October 19th

Previous: N/A

Expected: N/A

Fed Chair Powell will speak to the current economic climate in his last public address before the next FOMC meeting November 1st. Current expectations for an additional rate hike by the end of the year are around 33%. Any strong dovish language from Powell could alter those expectations close to zero while a hawkish stance could leave the door open to higher rates.

Inflation Rate - Japan

Time: 7:30pm ET Thursday, October 19th

Previous: 3.2%

Expected: 3.1%

Unlike many other countries, Japanese inflation has remained stready in the 3% range since February. Another similar reading could mean intervention from the Bank of Japan is required to get closer to 2%. Additionally, USD/JPY remains near extremes above 149.50.

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