Key events in each region, led by the US employment report, are expected to be the focus of the FX market next week. Around the release of the US August employment report on the 4th, a reassessment of the interest rate hike outlook could affect market trends.
The US August employment report is expected to be the main North American event next week, and if the labor market remains solid, expectations of an early Federal Reserve rate hike could revive. The market is expected to react strongly to the report released on the 4th, and the direction of foreign exchange could be influenced by the extent of improvement in employment conditions.
In Europe, ECB rate hike expectations will be a market focus, and expectations of a rate hike could strengthen depending on indicators such as the preliminary August CPI figure. Market risk appetite could change depending on the results of price indicators released on the 31st and 1st.
In Asia and Oceania, economic indicators from Australia and New Zealand are scheduled for release in succession. In particular, trends in New Zealand’s CPI and developments at the RBNZ could affect the market’s interest rate outlook. Developments in Asian markets, including Japan, are also likely to have a secondary influence on markets elsewhere.
In emerging markets, major indicators from Turkey, South Africa and Mexico are scheduled for release, and currency market volatility could rise depending on interest rate trends and inflation conditions in each country. In particular, Turkey’s CPI is due to be released on the 3rd.