![\"\"](\"\/wp-content\/uploads\/2025\/08\/image-104.png\")
<\/figure>\n\n\n\nGBP \u2013 UK Inflation print comes in hotter than expected<\/h2>\n\n\n\n
On a macroeconomic level, we note the release of the nation\u2019s CPI rates for July which came in hotter than expected. Specifically, both the Core and Headline rates for July came in at 3.8% implying not only persistent inflationary pressures in the UK economy but an acceleration. The inflation print may in turn increase pressure on the BoE to refrain from cutting interest rates in the near future as the battle against inflation may have not yet finished and could thus have provided some support for the sterling. For next week however it\u2019s set to be a pretty easy-going week for pound traders with no major financial releases expected. On a political level, UK Prime Minister Starmer was alongside other world leaders who met with President Trump earlier on this week to discuss a possible peace deal between Ukraine and Russia, although no market impact may be seen, the UK\u2019s status as a member of the \u201ccoalition of the willing\u201d which is essentially implies the UK would be willing to send peacekeeping forces to Ukraine may lead to other political implications and thus polls may warrant close attention.<\/p>\n\n\n\n
Analyst\u2019s opinion (GBP)<\/p>\n\n\n\n
\u201cIt’s a dicey situation for the UK with their hotter than expected inflation print. In our view we would not be surprised to see a slightly hawkish rhetoric emerging from policymakers\u201d<\/p>\n\n\n\n For JPY traders on a macroeconomic level, we highlight the release of the nation\u2019s nationwide CPI rates for July. The CPI rates on a core level came in hotter than expected at 3.1% versus the expected rate of 3.0%. In turn the implication of a persistence of inflationary pressures in the Japenese economy could potentially increase pressure on the bank to resume their rate hiking path. However, when looking at the bigger picture last month\u2019s rate was at 3.3% and thus despite it being higher than expected, inflationary pressures appear to be easing. Therefore, we turn our attention to the release of Japan\u2019s Tokyo CPI rates for August next week, which may provide some indication into the most recent status of the inflation narrative in Japan. Hence, should they showcase an acceleration of inflationary pressures it may aid the JPY and vice versa.<\/p>\n\n\n\n Analyst\u2019s opinion (JPY)<\/p>\n\n\n\n \u201cDespite the Core Nationwide CPI coming in higher than expected, when compared to the prior rate it still has eased and thus we would like to see next week\u2019s Tokyo CPI data before taking a stance on the possible path the BOJ may take in their next meeting\u201d<\/p>\n\n\n\n On a fundamental level, EUR traders are expected to be keeping a close eye on releases from across the Zone next week. Starting with Germany\u2019s Ifo figures for August which are due out on Monday. In particular the current conditions and inflation expectations may influence the EUR as should current economic conditions worsen it may imply less consumer spending and could thus weigh on the EUR. Moreover, key interest will be in the release of the preliminary HICP rates for France, Germany and the Eurozone as a whole. Should the financial releases showcase an acceleration of inflationary pressures, it may increase pressure on the ECB to refrain from cutting interest rates in the near future and could thus provide support for the common currency. On the other hand, should the inflation metrics showcase easing inflationary pressures it may then have the opposite effect and could thus weigh on the EUR.<\/p>\n\n\n\n Analyst\u2019s opinion (EUR)<\/p>\n\n\n\n \u201cThe EUR will be an interesting currency to watch next week with financial releases expected on numerous days which could influence the currency\u2019s direction. Obviously, our main focus is on the inflation data.\u201d<\/p>\n\n\n\n Australia\u2019s CPI rates for July are set to be released on Wednesday and may thus garner interest from Aussie traders. The release may be crucial for AUD traders as it is the only key event for the day which we have highlighted and thus absent of any unexpected events, it may the main factor influencing the Aussie for the day. Overall, should the inflation print showcase an acceleration of inflationary pressures it may aid the AUD and vice versa. However, we should also note that this week Australia\u2019s preliminary manufacturing PMI figure for August showcased an improvement from 51.3 to 52.9 and thus may have provided a slight boost to the AUD since Thursday or have mitigated the strong pull from the dollar.<\/p>\n\n\n\n Analyst\u2019s opinion (AUD)<\/p>\n\n\n\n \u201cIn the coming week the CPI rates given that they are the sole major event we have picked for the entire day could lead to heightened volatility for the AUD during the trading day and could thus garner attention from other market participants as well.\u201d<\/p>\n\n\n\n Canada\u2019s GDP rate for Q2 is set to be released next Friday. Canada finds itself is a precurious situation with it\u2019s southern neighbour having slapped tariffs on their exports and thus any signs of a slowing economy may raise alarm bells, thus placing emphasis an importance on the particular financial releases. Therefore, should the GDP rate for Q2 showcased continued economic growth, it may be seen as a positive for the nation and could thus aid the Loonie. Whereas should the Canadian economy appear to be loosing steam, it may have the opposite effect and could possibly weigh on the Canadian dollar.<\/p>\n\n\n\n Analyst\u2019s opinion (CAD)<\/p>\n\n\n\n![\"\"](\"\/wp-content\/uploads\/2025\/08\/image-105.png\")
<\/figure>\n\n\n\nJPY \u2013 Japan\u2019s Tokyo CPI rates in focus<\/h2>\n\n\n\n
![\"\"](\"\/wp-content\/uploads\/2025\/08\/image-106.png\")
<\/figure>\n\n\n\nEUR \u2013 EU inflation data in the spotlight<\/h2>\n\n\n\n
![\"\"](\"\/wp-content\/uploads\/2025\/08\/image-107.png\")
<\/figure>\n\n\n\nAUD \u2013 Australia\u2019s CPI rates due out Wednesday<\/h2>\n\n\n\n
![\"\"](\"\/wp-content\/uploads\/2025\/08\/image-108.png\")
<\/figure>\n\n\n\nCAD \u2013 GDP rates in sight<\/h2>\n\n\n\n
![\"\"](\"\/wp-content\/uploads\/2025\/08\/image-109.png\")
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