24/08/2026
๐ WEEKLY OUTLOOK ๐
Last week, the market focused on US Treasury moves while FX markets reacted to shifting central bank signals. This week, all eyes turn to the Jackson Hole Symposium, the US PCE Inflation print, and Nvidia earnings.
Here is a breakdown of key market dynamics across global economies:
๐ต United States (USD)
* FOMC Division: Minutes revealed a split committeeโseveral participants saw room for further tightening, while three regional presidents argued for an immediate 0.25% rate hike at the July meeting.
* Treasury Impact: Despite hawkish hints, the USD fell as the Treasury expanded its long-bond buybacks, soothing fiscal concerns after the 30-year yield touched its highest level since 2007 (above 5.3%).
* Focus Ahead: US July PCE data and the Fedโs Jackson Hole keynote will test whether the softer-dollar narrative persists.
๐ท United Kingdom (GBP)
* Data Mixed: Sterling reached three-month highs on dollar weakness. July CPI accelerated to 2.9% YoY on energy bills, but July Retail Sales slipped 0.5%, easing immediate rate hike pressure.
* Focus Ahead: With little top-tier UK data on tap, attention shifts to the Sep 17 BoE meeting. A hawkish stance could bolster GBP, whereas dovish signals might spark pullbacks.
๐ถ Eurozone (EUR)
* Economic Momentum: EUR traded near two-month highs on dollar weakness. Economic sentiment surged as ZEW jumped to 31.4 (from 23.4) and Flash Composite PMI hit 52.1, signalling the fastest growth pace since November.
* Focus Ahead: German Ifo and GDP data will show if recovery is expanding beyond manufacturing.
๐พ Japan (JPY)
* Growth vs. Inflation: 2Q GDP grew 0.3% QoQ (missing estimates on flat consumption), but July CPI picked up to 1.9% YoY while imports expanded trade deficits.
* Focus Ahead: Tokyo CPI and unemployment metrics will clarify whether sticky inflation keeps the Bank of Japan (BoJ) on a hawkish track.
๐ข๏ธ Energy & Commodities
* Oil: Supported by the geopolitical standoff in the Strait of Hormuz and potential new US measures on Tehran. However, a second consecutive weekly rise in US crude inventories capped gains.
* Gold: Approached 3-month highs supported by a soft dollar, fiscal concerns, and steady central bank accumulation. Fading rate hike bets could push prices higher, though dollar rebound remains a risk.
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IMPORTANT ANNOUNCEMENTS THIS WEEK
* Tuesday: RBA Meeting Minutes, BoJ Core CPI (YoY), German GDP (Q2), German Ifo Business Climate Index, US 2-Year Note Auction
* Wednesday: US Core PCE Price Index (Jul), US GDP (Q2), Nvidia (NVDA) Earnings
* Thursday: Jackson Hole Symposium Begins, US Initial Jobless Claims
* Friday: Global GDP Re-estimates & US Economic Data Final Readings
โ ๏ธ DISCLAIMER:
This post is for informational purposes only and is not investment advice. Past performance is not an indication of future results. Trading involves significant risk, and volatility can work against you as well as for you. Please trade responsibly and consider your risk tolerance before making financial decisions.