Japanese Tertiary Index (MoM) (JUL) (23:50 GMT; 19:50 EST)
Consensus:         0.0%
Previous:            -0.6%

Outlook:  The tertiary index, a gauge of money spent on services in Japan, including retailing and communications, is likely to have fallen flat in the month of July. The moderating reading should come as consumer confidence improved to 48.6 in July from 47.2 the month prior and the unemployment rate remained near an 8 year low at 4.1 percent. With Japanese consumers feeling more optimistic and seeing results in the labor market, they may have been more compelled to spend on services. Downside risk, however, comes as retail sales have steadily declined, printing a 0.2 percent dip on an annual basis in July.

Previous:  The Japanese tertiary index unexpectedly dropped 0.6 percent in June, as demand for services slipped from a near-six year high. The decline in the index was a result of diminishing building orders and a general lack of household spending. Consumer confidence fell below the 50 boom/bust level for the second month in a row in June as rising fuel prices put a squeeze on discretionary income. The disappointing reading could just be a correction following months of positive readings, as sentiment among companies providing services climbed in June and businesses said they faced the most severe labor shortages in 13 years. With the employment market tight, wages are likely to be driven higher and give a much-needed boost to the Japanese consumer.

Swiss Industrial Production (2Q) (07:15 GMT; 03:15 EST)
                         (QoQ)            (YoY)
Consensus:        6.9%              8.7%
Previous:           -1.9%              9.2%

Outlook:  Swiss factories are expected to report a significant rebound in activity in the second quarter, with the market consensus pinned at 6.9 percent growth.  These predictions seem reliable given the performance of the SVME Purchasing Managerââ,¬â"¢s Index over the same three months.  The average read for the survey of business leaders from April to June measured a strong 63.8, the highest in multiple years.  Activity amongst Switzerlandââ,¬â"¢s manufacturers has relied on sustained demand from export sources as well as the domestic consumer.  The long held trade balance rose to SFr 856 million in the second quarter, the highest since the three months ending in September in 2005.  Specifically for the month of June, exports grew to SFr 15.12 billion as with business confidence from Europeââ,¬â"¢s leading economies reaching recent record highs.  Additionally, the Swiss consumer has shown their optimism through boosting retail sales to a record 12.2 percent in April, while the following two months normalized.  Plans for spending were also quite high according to the UBS confidence indicator rise to its highest level since late 2001 by June.  With production high and expected to continue that way as the domestic cycle takes over in driving orders, the SNB will likely find the scope in inflation and economic growth to keep lifting rates for the month to come.

Previous:  Industrial output fell 1.9 percent in the first quarter from the final three months of 2005, however, the annual rate of industrial production jumped 9.2 percent for the same period. New orders helped to accelerate the increase, as the figure rose 16 percent and sales gained 11 percent on the back of a thriving export market. Additionally, a solid labor market has helped to maintain healthy consumer confidence and subsequently, strong domestic demand.

Euro-Zone Consumer Price Index (AUG) (05:00 GMT; 01:00 EST)
                          (MoM)             (YoY)
Consensus:          0.1%              2.3%
Previous:             -0.1%              2.4%

Outlook:  The Euro-zone Consumer Price Index is expected to edge back into positive territory increasing by 0.1 percent after registering the first decline in six readings the month prior. Persistently high energy costs along with slow but steady recovery in regional economic demand are expected to keep the price levels expanding at the 2.3 percent annual rate  - above ECBââ,¬â"¢s self proclaimed target of 2 percent.  A further ratcheting of price levels would almost certainly assure another rate hike from the ECB, which is concerned about the inflationary pressures percolating within the 12-member region.

Previous:  Euro-Zone inflation figures for July were revised downwards helping to assuage central bankersââ,¬â"¢ worst fears about price pressures at a time of robust economic growth in the 12-country region. Annual inflation last month fell to 2.4 per cent, from 2.5 per cent in June, according to Eurostat, the European Unionââ,¬â"¢s statistical unit. An earlier flash estimate had shown no change between the two months. Since the middle of last year, higher oil prices have pushed the annual rate significantly above that threshold. It has hovered around 2.4 per cent or 2.5 per cent since April and the ECB expects annual rates to average above 2 per cent this year and next. Core Euro-Zone inflation, excluding volatile oil and unprocessed food prices, has remained moderate ââ,¬â€œ although Thursdayââ,¬â"¢s data showed the core rate accelerating to 1.6 per cent in July, from 1.5 per cent in June.

US Consumer Price Index (AUG) (12:30 GMT; 08:30 EST)
                        (MoM)               (YoY)
Consensus:        0.2%                3.9%
Previous:            0.4%                4.1%

Outlook:  Inflation in the worldââ,¬â"¢s biggest economy is expected to have cooled in the month of August, which if true would provide the Federal Open Market Committee legitimate proof that its predictions of softer price growth with cooling consumer spending is working.  The consensus amongst economists is for the commonly tracked CPI gauge to slow to 3.9 percent annual growth.  These predictions are consistent with the slow down in the year-over-year measure of the import price index, the first of three inflationary reports released by the government.  Cheaper prices for consumers in the month of August would likely rely on the marked drop in energy prices, specifically gasoline, in the latter half of the month.  However, with many component import groups still rising their prices, some analysts expect the US business base to follow suit and try to pass their higher costs onto the consumer.  If the CPI eases in the August reading, the Fed will have greater scope to stick to its plan to allow a slowing economy drag inflation down naturally.

Previous:  The Consumer Price Index rose 0.4 percent over the month of July as energy prices reached record highs.  For the month, petroleum based products as a group were driven higher by crude prices reaching a fresh record.  While gasoline prices, the form of energy inflation that weighs on the consumer basket, was not setting its own records in most areas, it was still near such levels.  The primary effects of this single product group were obvious when looking to the core figure, stripped of energy, which actually slowed its pace for the first month in five.  Within the Labor Departmentââ,¬â"¢s statistics, the gasoline component, itself a part of the broader transportation group, grew 5.3 percent in July.  While most of the remaining sub-gauges were all slightly higher, the most effectual decline came from apparel group, which fell 1.2 percent.

US University of Michigan Consumer Confidence (SEP P) (15:45 GMT; 11:45 EST)
Consensus:          83.7
Previous:               82.0

Outlook:  Consumers are expected to be more optimistic in their outlooks for September, according to economistsââ,¬â"¢ predictions, with higher wages, falling gasoline prices and an improving foreign policy rapport paving the way.  Risks towards a surprise contraction in this read looms large as the steady and sharp drop in the housing market is still a very real weight on Americanââ,¬â"¢s available wealth.  However, the aforementioned bright spots could be the right combination to lift consumersââ,¬â"¢ spirits.  Though employment has moderated from the strong hiring trends seen earlier this year and into last year, a jobless rate still near a five-year low and persistent wage growth will keep the fire going.  In August, average hourly earnings rose 3.9 percent year-over-year, even as the more volatile monthly number slowed.  Perhaps more immediately visible to most Americans though is the marked improvement in relations with the Middle East and its close tie to energy prices.  With the Lebanon/Israel skirmish ending in a peaceful way and gasoline prices sinking off of near record highs, a shock to the global economy from extraordinary events seem to be less likely.  All in all, a renewed confidence could put the desire to spend back in the consumers mind which would further facilitate the Fedââ,¬â"¢s predictions of a soft landing in the US growth slowdown and a cooling of inflation.

Previous:  Consumer confidence eased to its lowest level lowest level in four months in August.  Though the 82.0 print reported in the final report was much better than the 78.7 figure initially reported, the concerns of gasoline prices, inflation and Iraq were obviously taking their toll.  Gasoline prices in the beginning of the month were still hovering near record highs, producing the large difference in the flash estimate and its later revision.  Most Americans expected the price at the pump to remain high for at least the rest of the month as problems in the Middle East continued to buoy prices that were already facilitated by demand due to the remaining weekââ,¬â"¢s of the driving season.  Another load for the consumer to bear for the month are interest rates.  Though the Fed had stopped its steady succession of quarter point hikes the month before, the steady 5.25 percent over night rate was no consolation to shoppers who were in the market for big ticket items or even housing.

Richard Lee is a Currency Strategist at FXCM.