Welcome to our regular recap of last week's fundamentals. It was a busy one. Let's recap the highlights together.
From the euro area we watched incoming data during the week, which in total came out negative for the euro. According to preliminary estimates (GDP) on Tuesday, the euro area economy contracted by 0.1% quarter-on-quarter.
One of the things the market was waiting for was Thursday's Bank of England meeting. The central bank left the key interest rate at 5.25% for the second consecutive year.
From the US, our primary focus last week was on the Fed meeting and incoming inflation data. The Fed kept rates at their 22-year high for the second consecutive year.
As for August, the Canadian economy stagnated.
Tuesday's data from the New Zealand labour market also showed a decline
At the end of the month, we could hear encouraging news from the Bank of Japan that a change in monetary policy was being considered.
What's in store for the current trading week?
This week is going to be a lot leaner, so we're going to rest a bit.
PMI numbers from Japan, the eurozone and Canada will be released on Monday. We will focus our attention mainly on Tuesday's meeting of the Reserve Bank of Australia (4:30), which could see a 25bp rate hike.