Monday's recap is here! Last week we got mostly inflation data and the US dollar was under fire again. Join us for a recap of the highlights.
USD
The US Dollar was hit by some negative data last week, which weakened it again.
Thursday's jobless claims rose to 232,000, which was in line with estimates. This increase kept claims quite high above average and contributes to the softening US labor market. This supports market bets that the Fed will cut rates at every meeting until the end of the year.
At a conference in Jackson Hole on Friday, Jerome Powell announced that the time has come to adjust monetary policy as his confidence in inflation returning to the 2 % target increases. He noted that the risks to further inflation have diminished while the risks to employment have increased. Powell emphasized the Fed's commitment to maintaining a strong labor market while ensuring price stability. This approach could open up room for a possible interest rate cut. He certainly did not slam the 50bp door here. On the back of these announcements, the US dollar started to weaken significantly as it was more of a dovish rhetoric.
What's in store for us this week?
Monday: -
Tuesday: GDP from Germany (EUR)
Wednesday: Monthly inflation indicator in Australia (AUD)
Thursday: German inflation rate (EUR), US jobless claims and GDP (USD)
Friday: Tokyo inflation rate and retail sales (JPY), Australian retail sales (AUD), German retail sales and labour market (EUR), Eurozone preliminary inflation rate and labour market data (EUR), Canadian GDP (CAD)
Sources:
English 
Czech 
Polish