Swiss UBS Consumption Indicator (AUG) (8:00GMT; 4:00EST)
Consensus: 1.900
Previous: 1.881

Outlook: The UBS measure of consumer sentiment, which aims to predict how fast private consumption will grow on a yearly basis, is anticipated to rise to a reading of 1.900 in August. Low unemployment should help to buoy the UBS figure, as it has already lent strength to retail sales figures. Household spending continued to underpin GDP growth in Q2 and is likely to do so going into Q3. The Swiss National Bank has noted the expansion in domestic demand as a possible driver of increased inflation, which has subsequently led them to raise rates four consecutive times to 1.75%, with an additional 25bp hike likely in December.

Previous: Consumer confidence in Switzerland fell to a reading of 1.881 in the month of July from 2.12 the month prior as demand for cars and retail goods slowed. Private consumption, which contributes about 60 percent to Swiss GDP, also makes up a large portion of the UBS figure. Sustained high energy prices have put pressure on consumer spending numbers, but a strong labor market and relatively low inflation have increased the purchasing power of the average Swiss citizen and should keep sentiment buoyant.

German IFO ââ,¬â€œ Business Climate (SEP) (8:00GMT; 4:00EST)
Consensus: 104.4
Previous: 105.0

Outlook: Business sentiment in Germany during the month of September is anticipated to slip once again to 104.4 from 105.0 in August. Geo-political tensions in the Middle East and dissatisfaction with domestic government policies, along with the increased terror threat are all negative factors that could weigh on confidence. A decline in the IFO figure would be in line with the most recent ZEW reading, which unexpectedly dropped to -22.2 from -5.6 as rising interest rates dimmed investor confidence. On the flip side, the outlook index of the ZEW reading actually increased as energy prices looked set to ease, and could also create upside risk for the expectations subset of the IFO reading.

Previous: The IFO research institute reported that its index of business sentiment fell for a second month to 105 in the month of August from 105.6 the month prior. Concerns began to arise that German expansion had peaked, as export acceleration has been able to power growth in manufacturing, which has subsequently led to improved labor market conditions and a jobless rate of 10.6 percent. Furthermore, IMF outlooks for growth next year were estimated to slow to 1.5 percent from about 2.0 percent this year. Downside risks were also perceived in the planned VAT hike to 19% from 16% in January 2007, which threatens to take its toll on the German economy.

US Consumer Confidence (SEP) (14:00GMT; 10:00EST)
Consensus: 103.0
Previous: 99.6

Outlook: Economists predict that consumer confidence improved in the month of August, as falling energy prices and a resilient labor market improve optimism in the worldââ,¬â"¢s largest economy.  According to the American Automobile Association, the average price for a gallon of regular unleaded gasoline fell from $2.94 in August to $2.58 in the first three weeks in September. Previous energy prices at record highs have placed a significant burden on US households and hurt retail sales in other sectors. With quickly falling energy costs, however, the US consumer has considerably more purchasing power at his or her disposal. This effect is magnified by consistently rising wage levels, which showed an impressive 7.6 percent annualized growth rate in the second quarter. Many economists hope that strong consumer confidence and subsequent spending will offset declines in real estate values. As such, it will be important to watch for any surprises in the important barometer of consumer health in the US economy.

Previous:  Consumer confidence fell to 9-month lows, as record-high energy costs and a slowing housing market hurt overall sentiment. Indeed, such a decline in optimism challenged expectations that stronger consumer spending could buoy slowing US economic growth. Given that the consumer spending sector accounts for 70 percent of the Gross Domestic Product, it will be critical to watch whether it can rebound after testing yearly lows. As such, we will watch for further developments in the measure of optimism of the countryââ,¬â"¢s 300 million-strong consumers.

Richard Lee is a Currency Strategist at FXCM.