The US Dollar (USD) continued its downward trend as the week closed, impacted by disappointing figures for US Nonfarm Payrolls in August (+22K jobs). The data only reinforced the strong likelihood of an interest rate cut by the Federal Reserve during its meeting on September 17-18.
The US Dollar Index (DXY) relinquished the gains achieved last week, concluding this period with slight losses, consistently reflecting the ongoing consolidative trend at the lower end of its recent range. The Consumer Inflation Expectations report from the New York Fed is set to be released on September 8. On September 9, the NFIB Business Optimism Index is set to be released, followed by the Nonfarm Payrolls Annual Revision and the API’s weekly report on US crude oil inventories. The regular weekly MBA Mortgage Applications will be released on September 10, ahead of the Producer Prices, Wholesale Inventories, and the EIA’s weekly report on US crude oil stockpiles. The Inflation Rate will be the focal point on September 11, preceding the regular weekly Initial Jobless Claims. The preliminary U-Mich Consumer Sentiment is set to conclude the calendar on September 12.
Friday’s strong performance pushed EUR/USD up to five-week highs near 1.1750, consistently backed by the rising selling pressure on the Greenback. The domestic docket will commence on September 8 with Germany’s Balance of Trade results and Industrial Production figures, accompanied by the Sentix Index. The final Inflation Rate in Germany is set to be released on September 12.
GBP/USD showed a robust upward momentum on Friday, successfully closing the week with solid gains following two back-to-back pullbacks. The BRC Retail Sales Monitor is scheduled for release on September 9. On September 12, we will see the RICS House Price Balance, GDP figures, Goods Trade Balance, Industrial and Manufacturing Production, Construction Output, and the NIESR Monthly GDP Tracker released.
USD/JPY dropped to the 147.00 area on Friday, resulting in the week remaining nearly the same as the prior one. Japan’s Current Account results are set to be released on September 8, followed by the final Q2 GDP Growth Rate, Bank Lending figures, and the Eco Watchers Survey. Machine Tool Orders are set to be released on September 9, and on September 11, we can expect the Reuters Tankan Index, BSI Large Manufacturing index, Producer Prices, and the weekly Foreign Bond Investment data. The concluding figures for Industrial Production and Capacity Utilisation are set to be published on September 12.
The AUD/USD pair climbed to multi-week highs, approaching the 0.6600 level closely. The last Building Permits and Private House Approvals are anticipated on September 8. The Westpac Consumer Confidence report is set to be released on September 9, coinciding with the NAB Business Confidence index. The Consumer Inflation Expectations from the Melbourne Institute are set to be released on September 11.
Looking ahead to economic viewpoints: Insights on the horizon
- The ECB’s Montagner is scheduled to address the public on September 9.
- Buch from the ECB is set to deliver remarks on September 10.
- On September 12, Jones from the RBA is scheduled to deliver remarks.
Central banks: Forthcoming meetings will influence monetary policies
- The ECB is scheduled to convene on September 11 with an actual rate of 2.00%, matching expectations. Similarly, the CBRT will also meet, reporting an actual rate of 43.0%, surpassing the anticipated 41.00%.