US Data
On Wednesday, the Federal Reserve is scheduled to release the highly anticipated minutes of its July meeting. Powell's acknowledgment of inflation improvement last month meant that the Fed was leaving the door open for a September rate decrease.
The benchmark revision to the level of nonfarm payrolls for March 2024 is expected to be released in a preliminary estimate by the Bureau of Labour Statistics on Wednesday as well.
The weekly data on initial unemployment claims will be made public on Thursday.
Powell Speaks
Friday at Jackson Hole, Wyoming, at the central bank's annual economic symposium, Fed Chair Jay Powell is scheduled to give the keynote speech.
The way that he indicates the pace and timing of rate decreases in the upcoming months will be closely watched by the markets.
After a severe selloff earlier this month due to a growth scare, subsequent strong data has allayed fears about the possibility of a recession and renewed optimism for a gentle landing for the economy.
The key area of contention among market investors is whether the Fed would reduce rates by a half point or a quarter of a percentage point at its forthcoming September meeting.
More Data
With the majority of them released on Thursday, purchasing managers' indices offer a current picture of economic activity and will offer crucial context for the outlook on global development.
The PMIs for July indicated a slowing in the economy together with ongoing inflation, illuminating the predicament facing central banks.
The manufacturing sector in the United States declined, and the unexpectedly low German data suggest that the largest economy in the Eurozone is falling. However, the cost of manufacturing inputs reached an 18-month high in advanced economies.
The future rate cut speed and depth will be determined by inflation. Replicating the gloomy PMI numbers from July might indicate that monetary easing proceeds more slowly than the markets would want.
US Presidential Race
The Democratic Party's convention begins on Monday in Chicago, and Democrats want to use this opportunity to strengthen Vice President Kamala Harris' campaign in the U.S. presidential election. Prominent Democrats are expected to give remarks throughout the four-day event with the goal of strengthening support for Harris.
Since entering the campaign in the wake of President Joe Biden's decision to resign, Harris has energised the Democratic base and, according to some opinion surveys, closed the deficit with Republican nominee Donald Trump. In some betting markets, she has already surpassed Trump before the election on November 5th.
Investors are eager to learn more about Harris' policy stances as the contest gets closer. Notably, Harris has emphasised her dedication of maintaining the independence of the Federal Reserve, a position that stands in stark contrast to that of her Republican opponent, former President Trump.
(Sources: investing.com, reuters.com)
