Welcome to our regular recap and outlook. The past week was literally bloated with central banks and inflation. Let's recap the most important news together.
Earlier in the week, we focused our attention on inflation from the Eurozone, which came a few days after the ECB meeting. The annual rate fell in August to the lowest since January 2022.
Last week was a very nutritious one for GBP and the negative data only reinforced our view that it is weakening. On Wednesday (the day before the BOE meeting), we were waiting for the current inflation rate data from the UK. The annual headline inflation rate had fallen to 6.7% in August from 6.8% previously.
On Wednesday, the Fed left the key interest rate unchanged, as expected. But the US dollar strengthened in response to the press conference.
What's in store for the current trading week?
This week will be much weaker. On Tuesday, we will focus on the current inflation rate in Japan. On Thursday, we will be waiting for initial jobless claims in the US.