Welcome to our regular recap and outlook. Last week was literally a week of 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 its lowest level 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 actual inflation rate data from the UK. The annual core inflation rate fell to 6.7 % in August from the previous 6.8 %.
On Wednesday, the Fed left the benchmark interest rate unchanged, as expected. However, 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 await initial jobless claims in the US.