Global economic data this week focuses on: expectations of interest rate cuts heat up

This week’s global economic data focus: expectations of interest rate cuts heat up

This week, the global economy ushered in a “super data week”, and key economic data from many countries were released intensively. Wednesday was particularly critical, with the New Zealand Federal Reserve’s interest rate decision, the UK-US CPI data for July and the US EIA crude oil inventories data successively announced, while Japan’s GDP and Australia’s employment data in the next two days also attracted much attention.

New Zealand Fed unexpectedly cut interest rates

Today, the New Zealand Fed unexpectedly cut interest rates by 25 basis points to 5.25%, the first rate cut since March 2020. Although inflation remains high, slowing economic growth and weak consumer and business confidence have prompted the Fed to take action to stimulate the economy and guard against the risk of a decline, triggering an increase in market expectations for the Fed’s interest rate cut.

US CPI data will be announced soon

After the Fed’s interest rate cut, the market focus quickly turned to the upcoming U.S. July CPI data to be released tonight. PPI data released last night showed that the U.S. producer price index rose less than expected in July, further easing market concerns about inflation. The market generally expects that if the CPI data continues to show a moderate trend tonight, it will strengthen the Fed’s expectation of a rate cut in September, which may put pressure on the US dollar.

UK CPI data affects interest rate cut expectations

At the same time, the UK’s July CPI data will also be released today, becoming one of the focus of market attention. The market generally expects that if inflation rises to 2.3%, it will support the Bank of England to adopt a hawkish interest rate cut strategy in September. Although the possibility of continuous interest rate cuts is low, a series of weak economic data may still push up market expectations and provide room for the Bank of England’s future monetary policy adjustments.

Other important data

In addition, important economic data from many countries will be released this week. Australia’s employment report, China’s industrial production, zeroSales and fixed asset investment data, as well as Japan’s second-quarter GDP data, will provide traders with more clues about global economic changes. Among them, as an important engine of the global economy, China’s economic data performance is particularly eye-catching.

This week’s release of economic data will undoubtedly bring new dynamics and uncertainties to the global market. Traders need to pay close attention to the economic trends and policy trends behind the data and stay alert at all times to make informed trading decisions.