UK Consumer Price Index (AUG) (08:30 GMT; 04:30 EST)
                           (MoM)              (YoY)
Consensus:           0.3%               2.4%
Previous:              -0.1%               2.4%

Outlook:  August UK CPI data is expected to post at 0.3 percent, as higher energy prices may start to seep through to the broader price basket and shifted larger share of the increases onto consumers. The most prevalent factor in CPI growth for households in August may end up being utility bills, with energy providers such as British Gas and Powergen already announcing gas and electricity price hikes. However, with the producer price index input and output figures recently printing lower than expected figures consumers . 

Previous:  In July, headline CPI read fell 0.1 percent on the month - below expectations for an unchanged reading from June, which in turn brought the annual rate down to 2.4 percent from 2.5 percent. Furthermore, the core gauge eased 0.2 percent while the annual rate slowed to 0.9 percent from 1.2 percent in June. Clothing, footwear and household equipment prices helped to pull the rate lower, while higher transport and housing costs, especially rising utility bills acted as a counterweight to the headline measure. Meanwhile, both RPI and RPIX were unchanged on the month, with the annualized rates remaining stable at 3.3 percent and 3.1 percent respectively.

Canadian International Merchandise Trade (JUL) (12:30 GMT; 08:30 EST)
Consensus:          C$4.9B
Previous:               C$4.7B

Outlook:  The Canadian trade surplus is estimated to improve C$0.2 billion to C$4.9 billion in the month of July as both import and export values are expected to expand. However stronger growth in net exports at 1.0 percent versus imports at 0.8 percent should push the surplus slightly higher. Export revenue is anticipated to increase in the month as energy prices continue to climb, however net exports are projected to exert a drag for third quarter GDP following the huge subtraction in the second quarter. A strong Canadian dollar continues to make for a difficult environment for non-energy exporters. However, the currency strength hasnââ,¬â"¢t stopped M&A demand, so appreciation of the currency may not weigh as heavily on growth going into the future.

Previous:  Canadaââ,¬â"¢s June trade surplus widened more than analysts expected to C$4.7 billion versus C$4.11 billion in May, led mainly by higher exports of energy and metals. Creeping oil prices and industrial production have sustained Canadaââ,¬â"¢s trade surplus during the past five years and has mostly made up for a slowdown in factory shipments to the United States due to recent dollar strength. Exports rose 1.1 percent to C$37.6 billion as sales of industrial goods and metals such as copper, aluminum and gold rose 2.9 percent to a record C$7.77 billion. Imports, on the other hand, fell 0.7 percent, led by a 5.5 percent drop in chemicals and plastics.

US Trade Balance (JUL) (12:30 GMT; 08:30 EST)
Consensus:           -$65.5B
Previous:                -$64.8B

Outlook:  The US trade balance is predicted to have widened in July, as the price of crude oil reached a fresh all-time high of $77.03 a barrel on July 14th. Surging energy costs are likely to outweigh the predicted gain in exports, which likely inched higher on increased foreign demand. According to the US Commerce Department, orders for domestically produced durable goods increased on the month, with foreign firms making up a portion of increased demand for US goods. Regardless, these increases are unlikely to match the pace of the soaring costs of oil imports. The overall foreign currency market impact of this release will be tempered, however, with market expectations of future budget deficit improvements as commodity prices recede. Regardless, it will be interesting to see whether tomorrowââ,¬â"¢s release will have an impact on considerations for the upcoming G7 meeting in Singapore. Given a US trade deficit at all-time highs, discussions will likely entertain the notion of how to improve global imbalances. Namely, American officials will likely further pressure China to revalue its currency, with potential for sympathetic gains in the Japanese Yen. 

Previous: The worldââ,¬â"¢s largest trade deficit narrowed in June as US exports gained on the month. Still, net foreign imports exceeded domestic exports by a substantial $64.8 billion, which was only marginally better than the previous monthââ,¬â"¢s $65.0 billion figure.  Analysts say that further improvement was made virtually impossible by heady gains in a rising oil import bill and consumer demand for other foreign goods. To that effect, recently receding energy prices should lead to an overall improvement in the number. Regardless, it is likely that the US deficit will stay close to record highs until we can see oil and other commodity prices fall below their recent trends. The US will continue to depend on net foreign investment inflows to pay for the net purchase of foreign goods. Thus it will be important to monitor upcoming Treasury inflows reports to see if net purchases of US assets will outweigh the large trade deficit.

Richard Lee is a Currency Strategist at FXCM.