A series of monetary policy announcements and major economic data releases is expected in the US, Europe and Japan this week. This article outlines the key market drivers, focusing on the direction of EUR/USD and USD/JPY.
The focus this week is on the timing of the European Central Bank's policy announcement, developments at the Bank of Japan and the release of US economic data. Movements in US long-term interest rates and expectations regarding monetary policy are cited as market drivers. Attention is focused on the direction of the US dollar, Japanese yen and euro, as well as the possibility of FX intervention and remarks by market participants.
The main events expected this week include the ECB's policy rate decision and press conference on 10 September, US initial jobless claims and the Producer Price Index on or around the same day, and the US Consumer Price Index and University of Michigan Consumer Sentiment Index on 11 September. Remarks by Bank of Japan policy board members could affect market conditions as far as Japanese indicators are concerned.
Reports indicate that the US and Canada will be closed on 7 and 8 September and that the release of US economic data will be postponed. During the week, movements in US long-term interest rates and expectations regarding US monetary policy are cited as key market focuses. Readers will want to watch USD/JPY and EUR/USD, as well as the timing of policy announcements in the major markets.