This Week: Nvidia earnings and US, EU inflation data

• Nvidia Q2 earnings release on August 28th

• Germany's August CPI on August 29th, expected to moderate
   
• Eurozone August CPI and US July PCEs on August 30th
   
• Slowing Eurozone inflation may lead to ECB rate cuts
   
• Market volatility expected across FX, indices, and US stocks

August is set to end with a bang, as the final week of the month holds some major market-moving events.

From the earnings release out of Nvidia a.k.a. “the world’s most important stock”, to key inflation data out of the Eurozone and the US, traders will have to be ready to react.
 

Note that this weekly preview is being written prior to Fed Chair Jerome Powell’s speech out of Jackson Hole (Friday, Aug 23rd), which could trigger massive market moves.

But this is no time to rest. Markets are set to offer outsized opportunities across FX, indices, and US stocks in the days ahead.

Events Watchlist:
 

• Wednesday, August 28th: Nvidia Q2 earnings (after US markets close)

Nvidia’s shares are forecasted to move 10.4% up or down when US markets reopen on Thursday, depending on what the company conveys both for last quarter’s earnings and its expectations for future profits.

If Nvidia is confident its coffers will only grow bigger moving forward with greater AI-spending from its clients, this stock’s surge is bound to also lift US indices such as the US500 and NAS100, and perhaps even global stocks in tandem.

• Thursday, August 29th: Germany August consumer price index (CPI)

Economists predict that headline inflation out of the Eurozone’s largest economy will moderate further in August, about 0.2 percentage points lower compared to July.

Slowing inflation should pave the way for more rate cuts by the European Central Bank and lift European stocks.

However, higher-than-expected CPIs may drag the GER40 index down towards the psychologically-important 18,000 level – a key support area from June/July.

• Friday, August 30th: Eurozone August CPI; US July personal consumption expenditures (PCEs)

While the Eurozone’s and Germany’s (from day prior) CPIs are set to ease lower, the US PCEs – the

Fed’s preferred inflation measure – are expected to tick up by 0.1 percentage points. Stubborn US inflation may force the Fed to cut rates at a slower clip compared to the ECB.

Such an outlook could push EURUSD towards the lower end of its 1.1013 – 1.1235 forecasted range next week, according to Bloomberg’s FX model.

Here’s a comprehensive list of other key economic data and events due next week:
 

Monday, August 26

• CNH: China medium-term lending rates
   
• SG20 index: Singapore July industrial production
   
• GER40 index: Germany August business climate
   

Tuesday, August 27

• CN50 index: China July industrial profits
   
• EU50 index: Germany 2Q GDP (final)
   
• RUS2000 index: US August consumer confidence
   

Wednesday, August 28

• AUD: Australia July CPI
   
• USD index: Speech by Atlanta Fed President Raphael Bostic
   
• Nvidia earnings
   

Thursday, August 29

• EUR: Germany August CPI; Eurozone August economic confidence
   
• US400 index: US weekly initial jobless claims; US 2Q GDP; speech by Atlanta Fed President Raphael Bostic
   

Friday, August 30

• JPY: Japan August Tokyo CPI; July jobless rate, retail sales, industrial production
   
• AU200 index: Australia July retail sales
   
• EUR: Eurozone August CPI; July unemployment
   
• US500 index: US July PCE, personal income and spending
   
• CAD: Canada 2Q GDP