Weekly Market Forecast: 2nd – 6th September
The upcoming week is set to be a busy one for traders and investors, with a slew of economic events and data releases scheduled to take place. From manufacturing PMI figures to central bank decisions, there is plenty for market participants to digest and analyze. Let’s take a closer look at what to expect in the financial markets from the 2nd to the 6th of September.
Monday: Eurozone Manufacturing PMI and Observance of Labor Day
The week kicks off with a few notable releases on Monday, including the final manufacturing PMI for the eurozone. This data point will provide insights into the health of the manufacturing sector in the region and could impact the performance of the euro against other major currencies.
It’s also important to note that Monday is a bank holiday in both Canada and the United States in observance of Labor Day. As a result, trading volumes may be lower than usual, and market volatility could be subdued.
Tuesday: Swiss CPI Data and U.S. ISM Manufacturing PMI
On Tuesday, Switzerland will release its Consumer Price Index (CPI) data, offering a glimpse into inflationary pressures in the country. Inflation data is closely watched by central banks as it influences their monetary policy decisions.
Meanwhile, the United States will report the Institute for Supply Management (ISM) manufacturing PMI. This data point measures the level of manufacturing activity in the U.S. and is a key indicator of economic health. A higher-than-expected reading could boost the U.S. dollar, while a lower reading could lead to a decline.
Wednesday: Australian GDP, Bank of Canada Monetary Policy Decision, and U.S. Economic Data
Wednesday is set to be eventful, with Australia releasing its Gross Domestic Product (GDP) figures for the second quarter. GDP data provides a comprehensive view of the country’s economic performance and can impact the Australian dollar’s value in the forex market.
The Bank of Canada is also scheduled to announce its monetary policy decision on Wednesday. Analysts are expecting a 25 basis points rate cut, which would bring the rate down to 4.25%. This decision could have significant implications for the Canadian dollar and the country’s economy as a whole.
In the United States, the Job Openings and Labor Turnover Survey (JOLTS) job openings and the Beige Book will be released on Wednesday. These reports provide valuable insights into the labor market and overall economic conditions in the U.S., influencing the Federal Reserve’s monetary policy decisions.
Thursday: RBA Governor Speech, U.S. Economic Data, and Swiss Inflation
On Thursday, Reserve Bank of Australia (RBA) Governor Bullock is scheduled to speak at the Anika Foundation in Sydney. Her remarks could provide clues about the central bank’s future monetary policy decisions, especially in light of recent inflation data that exceeded expectations.
In the United States, key economic data for Thursday will include the ADP non-farm employment change, unemployment claims, and the ISM Services PMI. These reports will offer insights into the state of the U.S. labor market and the overall economic outlook.
In Switzerland, inflation has been stable and is trending lower compared to other developed European countries. The Swiss National Bank (SNB) may take action to counter the strength of the Swiss Franc, with the market expecting a 50 basis points rate cut at the next meeting.
Friday: U.S. Labor Market Data and Canadian Employment Figures
On Friday, the United States will release data on average hourly earnings, non-farm employment change, and the unemployment rate. These reports are closely watched by investors and analysts as they provide crucial information about the health of the U.S. labor market and the overall economy.
Canada will also report its employment change and unemployment rate on Friday. The Canadian labor market has cooled down in recent months, reducing the risk of inflationary pressure and potentially prompting further rate cuts by the Bank of Canada.
In conclusion, the week ahead is packed with important economic events and data releases that could significantly impact the financial markets. Traders and investors should stay informed and be prepared for potential market volatility as a result of these developments.
