Swiss National Bank Rate Decision  (-- GMT; -- EST)
Consensus:            1.75%
Previous:                1.50%

Outlook:  The Swiss National Bank is expected to continue its quarterly trend of 25 basis point rate hikes at its monetary policy meeting tonight.  Since the last meeting in June, comments from SNB President Jean-Pierre Roth and his fellow policy members have frequented the public forum with comments on the necessity for a change in the lending rates.  Most of these comments have supported the need further remove accommodation in order to cool growth that has exploded in the past few quarters.  Recently, the government reported 3.2 percent annualized growth in Europeââ,¬â"¢s eighth largest economy, matching the fastest pace of expansion since the third quarter of 2000.  However, the economy has already begun to show signs of being winded.  The KOF leading indicator index for August slowed from the first time in a year while the UBS consumption indicator similarly slowed over the same period after hitting a five-year high.  Though these are relevant signs of an easing in pace, there seems little agreement of such from other reads.  While the UBS proprietary spending indicator has reported a drop, retail sales grew in its last print.  Additionally, the unemployment rate held to its lowest levels since October 2002, which in turn forced confidence levels to five-year highs. This leaves little doubt that domestic spending will drive inflation.  If however, Swiss shoppers decide to hold on to their francs, there is still support behind growth and inflationary pressures in foreign demand.  Julyââ,¬â"¢s trade balance hit SFr1.42 billion, the highest in over a year, as demand from the European community helped offset the costs of fuel imports.  The speculation that rates are in store for some time is so great that there is even growing speculation behind the SNB quickening its pace by either holding more than one meeting per quarter or perhaps a 50 basis point hike instead of the ubiquitous 25 basis points.

UK Retail Sales (MoM) (AUG) (08:30 GMT; 04:30 EST)
Consensus:           0.3%
Previous:              -0.3%

Outlook:  UK retail sales are predicted to have increased in August by 0.3 percent as consumers respond to the relief of cheaper petrol prices and a questionable improvement in employment. Jobless claims for the same month contracted for the second month in a row while total average earnings grew 4.4 percent through the three months ending July from a year before. Another facet playing into greater expectations for consumer spending has been the rebound in housing. Recently, the RICS Housing Price Balance ticked higher, suggesting the August 3rd rate hike has yet to dampen spending in the real estate market.  However, there are risks to the rebound in spending.  While the rate hike hasnââ,¬â"¢t proven itself in housing, it could way on purchases of other big-ticket items and their peripheries.  Furthermore, though jobless claims dipped over the month, the ILO unemployment gauge reached a 5-year high, placing a greater burden on Britsââ,¬â"¢ shoulders.

Previous:  Retail sales in the UK declined for the first time in six months by 0.3 percent in August as consumers reined in spending following the conclusion of the World Cup. While big ticket items such as televisions were being purchased the previous month, higher energy costs kept British wallets lean and slowed domestic demand. Furthermore, concerns about inflation spurred speculation about interest rate hikes by the BOE, which kept consumers from financing larger purchases.

US Advanced Retail Sales (AUG) (12:30 GMT; 08:30 EST)
Consensus:            -0.3%
Previous:                 1.4%

Outlook:  Retail sales in the US are expected to have slipped 0.3 percent in August following Julyââ,¬â"¢s jump of 1.4 percent. A weakening housing market is likely to have taken its toll on consumers whose confidence has diminished as their major source of wealth depreciates. Optimism levels dropped to a nine-month low in August according to the Conference Board survey.  These low levels of confidence are not surprising given the fewest existing homes sold in two and a half years while inventories of unsold residences on the market hit a record high.  In the years before, the housing market was the main component in the 5-year trend of strong growth in the worldââ,¬â"¢s largest economy.  However, the consumer still has reason to spend.  Unemployment still holds near a five-year low.  This combined with the drop in gasoline prices as the summer driving season ends and the Fedââ,¬â"¢s decision to stop hiking rates should keep retail sales from easing too much.

Previous:  The US consumer proved to be more resilient than expected in July, as retail sales jumped 1.4 percent after falling 0.4 percent the month prior. The rise in consumption came just as the Fed decided to hold rates at 5.25 percent in anticipation that inflation pressures would moderate over time. While purchases of electronics and cars surged, retailers were weary that sales would not be sustainable as high gasoline prices would likely impact automobile retailing. Furthermore, weakness in the housing market is also slowing refinancing, a source of cash homeowners have relied on for several years to boost spending.

Richard Lee is a Currency Strategist at FXCM.