\u201cIn our view the Fed has had it\u2019s \u201cdovish\u201d pivot following Powell\u2019s comments last Friday. In turn we<\/em> would not be surprised to see the Fed cutting rates in their next meeting even if the PCE rates today tick<\/em> slightly upwards. Our main concern however is the legal battle which will ensure between Governor Cook and President Trump, as the Fed\u2019s independence is crucial and the White House\u2019s pre-emptive firing could set a dangerous precedent down the line and could reduce confidence in the US as a whole.\u201d<\/em><\/p>\n\n\n\n On a macroeconomic level, we note the release of the UK\u2019s manufacturing PMI figure for August which is due out on Monday. Should the figure showcase an improvement or even enter expansionary territory it may be seen as a positive for the manufacturing sector of the UK economy and could possibly provide support for the sterling . On a monetary level, BoE Governor Bailey noted that Britain is facing a challenge from its weak underlying economic growth and drop in number of workers since the pandemic. Thus the concerns of the Governor in regards to the nation\u2019s economic growth may imply that the bank could maintain its rate cutting approach in order to stimulate the economy.<\/p>\n\n\n\n Analyst\u2019s opinion (GBP)<\/em><\/p>\n\n\n\n \u201cThe UK\u2019s manufacturing data is interesting for pound traders, yet our main concern is the recent reports about the imposition of NIS contributions on rental income. Such a possibility could heavily influence the UK economy and thus may warrant closer attention.\u201d<\/em><\/p>\n\n\n\n For JPY traders on a macroeconomic level, we highlight the release of Japan\u2019s Tokyo CPI rates for August earlier on today. Japan\u2019s Tokyo CPI rates tended to confirm the expectations of economists in regards to easing inflationary pressures in the Japanese economy. In turn the implications of easing inflationary pressures in the Japanese economy may reduce calls for the BOJ to resume on their rate hiking path. Hence, should BOJ policymakers showcase an unwillingness to hike rates in the near future it may be perceived as dovish in nature which in turn could potentially weigh on the JPY. In terms of financial releases in the upcoming week, it\u2019s set to be pretty easy going with no major financial releases expected from Japan, with only their JiBunk final manufacturing PMI figure for August being of high significance. On a monetary level we note the comments made by BOJ member Nakagawa who stated that \u201cuncertainty surrounding trade policies have eased slightly compared to April\u201d which could imply that the bank may be prepared to take financial releases at face value and reduce the incorporation of possible shocks as a result of the US\u2019s trade ambitions into the bank\u2019s considerations during their monetary policy meeting.<\/p>\n\n\n\n Analyst\u2019s opinion (JPY)<\/em><\/p>\n\n\n\n \u201cWe don\u2019t see the immediate case for the BOJ to resume on their rate hiking path. Specifically, the release of the Tokyo CPI rates today showcase once again that inflation appears to be moderating and thus there appears to be no need in our opinion for the BOJ to hike in their next meeting. Therefore, the JPY\u2019s direction in the coming week may be dictated by other stronger currencies\u201d<\/em><\/p>\n\n\n\n On a macroeconomic and monetary level, it was a busy week for EUR traders with the release of Germany\u2019s and France\u2019s preliminary HICP rates earlier on today and the release of the ECB\u2019s last meeting minutes. Starting with the ECB\u2019s July meeting minutes in which it was stated that \u201cIndicators of underlying inflation were consistent overall with the 2% medium- term target\u201d implying that the bank is not in a rush to cut rates and thus could opt for a more gradual rate cutting approach or even possibly remain on hold in the near future. In turn this may have provided support for the EUR. Interestingly France\u2019s preliminary HICP rate for August came in lower than expected and thus should Germany\u2019s preliminary HICP rate for August which at the time of this report have not been released, showcase easing inflationary pressures it could weigh on the EUR. For next week EUR traders may be looking forward to the Zone\u2019s revised GDP rate for Q2 as well as the Zone\u2019s preliminary HICP rate for August. Both financial releases could dictate the ECB\u2019s stance heading into September. On a political level, France is once again in political turmoil with possible early elections occuring on the 8th of September. The political instability could possibly weigh on the European Equities markets.<\/p>\n\n\n\n Analyst\u2019s opinion (EUR)<\/em><\/p>\n\n\n\n \u201cFrance’s political turmoil is counterproductive for the rest of the Zone. The political issues in France need to be resolved overall in our opinion. Moving on, the ECB appears to have no reason to rush to cut rates and thus we wouldn\u2019t be surprised to see them remaining on hold given that inflation appears to be easing and the EUR\u2019s levels against the dollar from an FX perspective have improved and thus could counter inflationary pressures as noted in the bank\u2019s July meeting minutes\u201d<\/em><\/p>\n\n\n\n to a macroeconomic level, Australia\u2019s CPI rate on a month of month level came in hotter than expected implying an acceleration of inflationary pressures which may have aided the Aussie and countered the dovish remarks which may have appeared in the RBA\u2019s last meeting minutes which were released on Monday. For next week Australia\u2019s GDP rate for Q2 is set to be released next week and should it showcase an improvement in the country\u2019s economic growth it may aid the Aussie and vice versa.<\/p>\n\n\n\n Analyst\u2019s opinion (AUD)<\/em> \u201cThe RBA\u2019s minutes in our opinion where dovish in nature and thus could weigh on the Aussie in the coming week as well. In our view we not be surprised to see a dovish rhetoric emerging from RBA policymakers and for the Aussie to cede control to other stronger currencies.\u201d<\/em><\/p>\n\n\n\n Loonie traders are expected to be fairly busy with the nation\u2019s employment data set to be released next Friday. Should the employment data for August showcase a resilient labour market it may aid the Loonie, whereas should the data showcase an easing labour market it could prompt the BoC to possible continue on their rate cutting path which may then weigh on the CAD. Furthermore, we would like to note that the Ivey PMI figure for August is set to be released following Canada\u2019s employment data and could either weigh or aid the Aussie depending on the financial release.<\/p>\n\n\n\n![\"\"](\"\/wp-content\/uploads\/2025\/08\/image-137.png\")
<\/figure>\n\n\n\nGBP \u2013 Manufacturing data next week for sterling traders<\/h2>\n\n\n\n
![\"\"](\"\/wp-content\/uploads\/2025\/08\/image-138.png\")
<\/figure>\n\n\n\nJPY \u2013 Japan\u2019s Tokyo CPI rates come in lower than expected<\/h2>\n\n\n\n
![\"\"](\"\/wp-content\/uploads\/2025\/08\/image-139.png\")
<\/figure>\n\n\n\nEUR \u2013 EU GDP rates next week<\/strong><\/h2>\n\n\n\n
![\"\"](\"\/wp-content\/uploads\/2025\/08\/image-140.png\")
<\/figure>\n\n\n\nAUD \u2013 GDP rate for Q2 due out next week<\/h2>\n\n\n\n
<\/em><\/p>\n\n\n\n![\"\"](\"\/wp-content\/uploads\/2025\/08\/image-141.png\")
<\/figure>\n\n\n\nCAD \u2013 Canada\u2019s Employment data due next Friday<\/h2>\n\n\n\n
![\"\"](\"\/wp-content\/uploads\/2025\/08\/image-143.png\")
<\/figure>\n\n\n\n