We'll find out this week if Hungarian economy continued sprint or not
On Tuesday morning, the Central Statistical Office (KSH) is set to publish detailed industrial production data, and key figures are to be released in Germany, as well. Markets, however, are expected to focus more in the U.S. CPI data to be published in the afternoon, given that the key argument by the Federal Reserve for a rate cut was the low inflationary pressure at the end of July. That is why the inflation print could be of key importance in respect of interest rate expectations.
On Wednesday morning, the Hungarian stats office is set to release its first estimate for the country’s Q2 GDP growth. The Hungarian economy grew by 5.3% year on year in the first three months of 2019, and we’re about to find out whether this extremely rapid rate was maintained or growth has already receded in April-June. Eurostat, the statistical office of the European Union, is also set to release Q2 GDP data for EU member states, so we’ll be able to compare how Hungary fared in EU terms.
On Thursday, the only two foreign releases worth mentioning are the UK and U.S. retail stats. In Hungary, the MNB will disclose its international reserves figures on the last working day of the week. Also on Friday, Standard & Poor’s and Fitch Ratings are expected to release the results of their review on Hungary’s sovereign ratings, and an upgrade would not be a massive surprise.