📊 Canadian CPI Announcement
Canada is all set to announce the Consumer Price Index (CPI) for August on Tuesday. Notably, economists and researchers from major banks have put forth their predictions. If forecasts are to be believed, we might see the headline inflation at 3.8% YoY, marking a surge from July’s 3.3%. This further deepening above the 2% target could turn some heads, especially with a month-on-month rise anticipated to be at 0.2%. From my perspective, such acceleration in inflation could be a turning point for market reactions and monetary policy adjustments.
🇺🇸 FOMC’s Big Day – Powell’s Approach on Rates
The week screams ‘Central Banks’. And no doubt, all eyes will be on J Powell and the US FED this Wednesday. While other central banks also have their events lined up, the U.S. stands as a major pivot. My personal take? J Powell might resist the urge to hike the rates, maintaining a stable stance. However, he will likely keep his hawkish tone, mirroring the strong Dollar sentiments we’ve recently seen. The market seems to be ahead of the curve, pricing out cuts and leaning towards a prolonged higher rate era. The effects on risk assets? Let’s watch and wait.
🌎 Global Macro Friday
This Friday promises a cascade of macroeconomic data. While the Bank of Japan will be hosting its press conference, shedding light on its monetary policy, major economies like France, Germany, the UK, and the US will release their PMI data. These announcements are bound to drive market narratives for the subsequent weeks. It’s a heavy-duty week for macro watchers, and my advice? Stay informed and be prepared for potential market shifts. The intertwined global economy means that ripple effects can be expected across sectors and assets.