German Current Account Balance (euro) (AUG) (06:00 GMT; 02:00 EST)
                      (Current Account)       (Trade Balance)
Consensus:            3.5B                           11.6B
Previous:               7.3B                           13.1B
 
Outlook:  The August Current Account balance for Germany is expected to report at a larger, 7.3 billion euro surplus from Julyââ,¬â"¢s 3.5 billion euro figure as export continues to find external demand with a cheap currency. Given the current conditions, robust world economic expansion should continue boosting export demand in the Euro-zone. Also, below average inflation rates in recent years have boosted the competitiveness of German exports within the Euro zone and this should be a factor continuing to support exports. However, significant portions of the exports may be made with imported goods, which are rising after companies relocated part of their production process to the new EU countries in East, or are getting a large part of their intermediate goods from South-East Asia. This could limit the overall impact of exports on growth and create downside risk for the current account results.
 
Previous: German exports rose more than expected in July as global economic growth fueled demand for goods ranging from factory machinery to cars and plastics from Europeââ,¬â"¢s largest economy. Export growth has fueled company spending in Germany, which has subsequently created jobs and boosted confidence that the economy will end with its best performance since 2000. Overall demand for German goods may cool as continued monetary tightening takes effect in upcoming quarters and the economy cools. However, foreign demand has been surprisingly strong and could be able to stave off a material slowdown of the EZ economy.

UK Producer Price Index ââ,¬â€œ Output (SEP) (08:40 GMT; 04:30 EST)
                          (MoM)           (YoY)
Consensus:          0.1%            2.1%
Previous:             0.0%            2.6%

Outlook:  Prices paid at the factory gate are expected to have grew slightly over the month of September as executives see strong spending and a robust housing market as a good opportunity to recapture revenue.  Stoking expectations of a solid foundation of demand for the month, both the Nationwide and GfK consumer confidence figures were printing positive shifts as consumers foresaw strong growth and larger home equity in the coming months.  Fulfilling the residence outlook now and already providing a strong source of wealth, nearly every housing price indicator has pointed to the same increase for the period.  The HBOS, Nationwide, and Rightmove housing price gauges all reported inflation over the month.   These forecasts of more expensive prices paid to producers are noticeably contradicting the expected contraction in input prices for the same stretch of time.  Economists expect a 1.0 percent drop in prices of raw materials, as crude and industrial metals continue their slide lower. If consumers continue to absorb the inflation sent their way while businesses benefit from the spread, the BoE will find it easier to consider a rate hike in the months ahead.

Previous: Prices received by UK producers were unchanged for the first time in over the year in August after a string of modest monthly increases.  Producers decided to leave prices unchanged over the month as incentive to lure domestic spending at the wholesale and consumer levels with expensive retail gasoline still draining accounts.  From the categories of goods produced and sold by factories, nearly every one had shown little to no change month over month.  Even petroleum products at the factory level were unchanged from Julyââ,¬â"¢s number.  At the same time, while prices charged were unchanged, those spent on raw materials were much lower.  A 1.2 percent slide in base goods and commodities was the biggest since December 2004.

German Industrial Production (AUG) (10:00 GMT; 06:00 EST)
                          (MoM)           (YoY)
Consensus:          0.3%            5.9%
Previous:             1.2%            4.7%

Outlook:  Factory activity in Europeââ,¬â"¢s largest economy is expected to have slowed over the month of August as stubbornly high energy prices and cooling demand slow the process.  While energy prices began what would be a sharp drop in the closing weeks of August, businesses were likely cautious about acting on the shift.  Furthermore, domestic sales continued to abate as Germans controlled their aggressive spending habits from the World Cup phenomenon.  Other business side indicators have already printed slower numbers for the month of August, furthering speculation for slower factory activity.  A business confidence survey from the period dropped to an eight month low for the same period, while a manufacturing spending indicator reported weaker output and export and domestic orders numbers.  A positive number is still in the cards however as the initial decline in energy will have some effect and a recently factory orders releases for August staved off predictions of a drop to show a strong 3.7 percent increase for the period.

Previous: German industrial production increased 1.2 percent over the month of July despite the presence of higher energy prices cutting into revenues.  Crude oil prices reached a new record high in the month of July, crimping growth outlooks in economies around the world.  Another issue for which factories were worrying was the planned hike in the value-added tax from 16 to 19 percent, to take effect in January.  Fears that it may crimp demand were also shared by investors as their levels of optimism dropped to the lowest level in five years.  Despite this however, output levels were still beyond the marketââ,¬â"¢s expectations.  Construction work grew 3.4 percent over the month, while production on consumer goods like fridges and appliances expanded 3.2 percent.

Richard Lee is a Currency Strategist at FXCM.