The latest analysis of popular markets from our team of industry experts.
After two weeks of intensive US dollar focus, the attention will finally shift to the Asia Pacific in the first week of September.
The G20 meeting in Hangzhou, China, will of course be in focus on September 4th and 5th, when the world’s leaders will once again discuss the state of the world’s economy.
Looking at major macro events next week, the Reserve Bank of Australia will give it policy verdict on Tuesday. The RBA is expected to maintain the status quo and keep its cash rate unchanged at the historical low of 1.50%. With signs of stabilisation from China, we could expect the RBA to retract towards a wait-and-see mode, especially now that the hawkish Fed is paving the way for a softer Aussie.
On Wednesday, the UK’s manufacturing and industrial production will be closely watched. Last week’s strong PMI figures out of the UK, boosted optimism in the pound market, so the pound will be closely watch again next week. The upside attempts in Cable suggest that there is potential for a further recovery in the pound. Another interesting cross to watch will be EURGBP.
Wrapping up next week’s agenda, the European Central Bank meet on Thursday. The central bank is expected to maintain its policy unchanged, and the market is not expecting any fireworks from September’s meeting.