• U.K. CIPS Construction PMI
• Euro zone Producer Price Index
• U.S. Non-Farm Payrolls

U.K. CIPS Construction PMI (AUG)(08:30 GMT, 04:30 EDT)
Consensus: 54.5
Previous: 54.7

Outlook: The U.K. construction PMI looks to inch lower, as a slow housing market will likely weigh on overall construction orders. Recent lending figures suggest that low U.K. dwelling lending amounts will cap potential gains. The headline figure has fallen in two consecutive months, down to 6.45 billion in July from 8.00 billion in May. The end of a decade-long surge in housing prices saw values decline 0.2 percent on the month. On the commercial side of construction, recent declines in business investment will likely drive the CIPS PMI figure lower. Drops in consumer spending have made firms reluctant to boost production, dampening levels of fixed capital expenditures. While analysts expect the construction PMI number to remain in positive territory, negative risks could potentially see a sizeable drop in growth.

Previous: The U.K. CIPS construction PMI fell from 55.8 to 54.7 in July, declining off of the previous month's six-month high. Despite the drop, however, the three main subsections of the survey data showed moderate gains. The strongest appreciation could be found in the commercial sector, and housing activity posted its best showing in six months. Despite the gain, however, experts expect construction growth to retrace in subsequent months. Commodity prices near record highs will likely crimp business spending, as it becomes more expensive for firms to make further capital investments. High energy prices likewise cut into consumers' disposable income, cutting spending and producers' revenues. Moving forward, experts will monitor overall business investments to gauge the direction of future growth.

Euro Zone Producer Price Index (July)(09:00 GMT, 05:00 EDT)
Consensus: 0.5%
Previous: 0.5%

Outlook: Euro zone producer price inflation looks to stay at elevated levels, as sky-rocketing oil prices and a depreciated euro led input costs higher. Crude oil's surges to record-highs have continued to weigh on producers around the world, but the effects on European producers are especially acute. Given that the commodity is traded in U.S. dollars, a weakened euro only exacerbates price increases. Producer price inflation is expected to stay at a high 4.0 percent on an annualized basis. As such, it is important that consumer demandâ€"both international and domesticâ€"remains firm so that producers can pass higher input costs onto final prices. Recent manufacturing data suggests that this is the case, as both French and German PMI showed that output grew in the month of August. If energy prices continue their torrid growth, however, we could see producer profit margins fall as consumers' disposable income erodes.

Previous: Euro zone producer prices surged as commodity prices reached record highs on heightened international demand. After falling 0.2 percent in May, prices gained a substantial 0.5 percent in June. Such high costs sparked speculation that overall industrial output would drop. Surprisingly, however, subsequent data has shown that euro zone manufacturing has recently improved. Crossing into positive territory for the first time since March, euro zone PMI reflected production growth in July. While the number subsequently dipped in August, it remains above expansionary levels at 50.4. Moving forward, experts will monitor overall price levels and producer profit margins to gauge the direction for European industry. 

US Nonfarm Payrolls (MoM) (AUG) (12:30 GMT, 8:30AM EDT)

Consensus: 190K
Previous: 207K

Outlook: Economists are expecting August's change in nonfarm payrolls to fall slightly to 190,000 from 207,000 in July. Manufacturing jobs are expected to remain unchanged compared to a 4,000 drop in July. The ISM employment component registered a small decrease. However, in the regional surveys, only the Chicago region saw a drop in the employment index while the New York and Philadelphia Feds reported gains. Unfortunately, the ISM nonmanufacturing survey results, which usually give more insight into the larger portion of the American labor force, for August won't be available until next week. However, from the data that we have, the numbers seem to be quite supportive of a drop, if not posing a small downside risk. Initial jobless claims have been rising recently from July's low levels. While the entire month of July saw claims coming in below the four-week moving average, August's figures were all above the average. With the negative data that we've been seeing from the US this week, a disappointment could cause pretty hefty losses for the dollar.

Previous: July's change in nonfarm payrolls came out higher than expected at 207,000 compared to the median estimate of 180,000. The numbers from the prior two months was also revised up by a total of 42,000. Going into the report, market expectations were definitely on the upside as the previous few weeks brought very encouraging jobless claims data. Both of the ISM reports also had fairly positive employment component index numbers. While manufacturing shed 4,000 jobs, retailers took on 49,800 new employees making it the biggest monthly gain since 1999. The increase in payrolls left the unemployment rate at its four-year low of 5.0%. The earnings growth shown in this news release was also encouraging with a 6 cents, or 0.4%, gain in hourly earnings, which was the largest rise in a year. This is the sort of job growth that other indicators have been pointing to for months now and it should bode well for consumer confidence and spending going forward.

Richard Lee is a Currency Strategist at FXCM.