Japanese Industrial Production (JUL P) (23:50 GMT; 19:50 EST)
                                     (MoM)                (YoY)
Consensus:                 0.7%                  6.5%
Previous:                      2.1%                  5.0%

Outlook: Output by manufacturers as measured by industrial production is likely to slow from Juneââ,¬â"¢s record high to an expected 0.7 percent pace of growth. The predicted figure, however, is still robust and would bring the annual rate to a whopping 6.5 percent. Foreign demand should continue to rise, and while the US could falter in the amount of industrial goods they import from Japan, solid growth in other countries is likely to pick up the slack. Furthermore, demand by Japanââ,¬â"¢s largest companies could give producers a boost, as recent business surveys show that firms plan to increase investment at record pace.

Previous: Industrial production rose the most since April 2004 to a reading of 2.1 percent in June. The figure was well above the consensus figure of 1.3 percent as manufacturers expected continued demand growth around the world. Carmakers and machinery manufacturers showed the biggest gains, but some saw this as a point of concern. Should global growth falter, companies could be stuck with goods they canââ,¬â"¢t sell, leading to subsequent drops in output later in the year and also increasing costs for firms that have to pay for inventory storage.
 
German Unemployment (AUG) (07:55 GMT; 03:55 EST)
                                  (Rate)                 (Change)
Consensus:                10.6%                   -20,000
Previous:                    10.6%                   -84,000

Outlook: The German unemployment level is anticipated to improve for the fifth month in a row in August as the number of jobseekers should fall 20,000. Solid European economic growth has resonated throughout Germany, as reflected by GDP gains of 0.9 percent in the three months ending June, the fastest such pace in five years. The pickup in growth was led by investment in buildings and equipment by companies who found themselves more profitable amidst increasing demand both domestically and abroad. This same acceleration in demand has also encouraged firms into a hire cycle to take on additional employees in order to boost production.

Previous: The number of jobseekers in Germany declined by 84,000 in July, the most since December 2005 as the unemployment rate dropped to 10.6 percent from 10.8 percent in June. The actual unemployment change was more than double expectations of a decline of 30,000. Export driven growth in Germany fueled corporate investment and hiring as firms worked to meet rising demand. As the labor market has firmed, domestic demand has subsequently risen and lent broad based strength to GDP growth not only in Germany, but throughout the Euro-zone as well.

European Central Bank Rate Decision (11:45 GMT; 07:45 EST)
Consensus:            3.00%
Previous:                3.00%

Outlook: The benchmark Euro-Zone interest rate is expected to go unchanged at the conclusion of the ECBââ,¬â"¢s monetary policy meeting.  Usually very vocal in the lead up to its decisions to promote transparency for capital markets, the board of directors have been quiet in the spans of time since the bank decided to raise rates 25 basis points on August 3rd to its current level.  However, there are a number of economic indicators that will play into this decision.  Amongst those issues that are promoting a removal of additional stimulus are growth and certain aspects supporting consumer confidence.  Recently, gauges of economic activity have reflected upon an economy that is expanding at a powerful pace.  For the entire area, second quarter GDP printed 0.9 percent growth over the three months and a 2.4 percent pace year over year.  For the German economy, expansion over the same three months had also moved at 0.9 percent pace, which was the nationââ,¬â"¢s fastest in five years.    There are also a few indicators that are supporting the future of consumer spending in the area to further support economic expansion as well as inflation.  The forward looking GfK German consumer confidence read for September stepped higher to report a 8.6 read, which was partially the product of a record low 7.8 percent unemployment rate for the entire region.  On the other hand, these were amongst the few positive numbers supporting faster economic and price growth.  The shocking ZEW indicators of investor confidence for Germany and the entire Euro-Zone fell to 15-year lows in August, showing waning optimism when current reads are still strong.  Furthermore, inflation for the region ticked lower in July to a 2.4 percent annual headline pace.  When the ECB board members meet, they will need to decide whether the current condition indicators warrant a rate hike now or if forward looking gauges are suggesting moderation ahead.

Canadian Annualized Gross Domestic Product (2Q) (12:30 GMT; 08:30 EST)
Consensus:           2.7%
Previous:               3.8%

Outlook: Annualized GDP in the second quarter is likely to slow to a 2.7 percent gait from 3.8 percent in the opening three months of the year. The month of May surprised the market by reporting that the Canadian economy failed to grow for the first time in eight months as the month over month figure posted an ominous 0.0 percent. Declines in retail sales, construction, and oil and natural gas production provide substantial downside risk for overall economic growth. Previously, these sectors had fueled Canadian expansion as confident and wealthy consumers bought homes and durable goods, and rising energy prices spurred extraordinary investment in Albertaââ,¬â"¢s oil fields.

Previous: Economic growth in Canada accelerated faster than the anticipated consensus of 3.0 percent to reach an annual rate of 3.8 percent over the first quarter, up from 2.6 percent in the final three months of 2005. Consumer spending and construction in the first quarter got a boost from a warmer-than-usual winter and a dip in gasoline prices. Additionally, the jobless rate fell to a 31-year low of 6.3 percent in March, which served to improve domestic demand. The Bank of Canada signaled on May 24 that it would pause on its series of seven rate hikes since September 2005 on signs of cooling growth, lending a bearish CAD bias going into the second half of 2006.

US Personal Spending (JUL) (12:30 GMT; 08:30 EST)
Consensus:          0.8%
Previous:              0.4%

Outlook: Accounting for nearly 70 percent of the gross domestic product, consumer spending in the worldââ,¬â"¢s largest economy is expected to have accelerated to 0.8 percent growth in July.   Such expectations run counter to the periodââ,¬â"¢s concerns for near-record gasoline prices and a stumbling housing market, but optimism is expected to have won out for liberal spending habits as wages and employment move steadily ahead.  Consumer confidence was well stoked over the month of July, as was seen in the three-month high in the Conference Boardââ,¬â"¢s read of Americanââ,¬â"¢s optimism.  Gasoline over $3 per gallon and housing sales falling to two-year lows was overshadowed by continual additions to payrolls and the fastest growth in earnings in five years.  Already casting its support for this report, the retail sales data for July grew 1.4 percent for its fastest pace this year.  Even though the gauge still jumped 1.0 percent when auto sales were extracted, vehicle sales were a large contribution with renewed dealer incentives pushing the annual rate of units purchased to 17.2 million.  Should the personal spending indicator confirm the retail sales data, the Fed will have more to consider in its claims that growth is slowing.

Previous: According to the Commerce Departments report, consumer spending grew 0.4 percent over the month of June.  The smallest increase this year, the subsequent rise in price for goods furthered the problem faced by the FOMC of containing inflation as growth eases.  Spending in July was buoyed by a 0.5 percent increase in durables and to a lesser extent a 0.1 percent rise in services, which account for 60 percent of the entire number.  Facilitating the positive growth in American consumption, the disposable income component of the headline indicator grew 0.6 percent.   Aside from the slower growth, the most troubling aspect of the monthââ,¬â"¢s indicator was the still high pace of inflation.  The annual personal consumption expenditure read for the second quarter accelerated to an 11 year high 2.9 percent, making the right monetary policy decision less clear-cut.

Richard Lee is a Currency Strategist at FXCM.