This week's highlights include the Bank of Canada's monetary policy announcement and US and Canadian labour market data.
This week is busy in terms of economic events, and the week starts on Monday with a bank holiday in Canada and the United States celebrating Labor Day.
On Tuesday, inflation data represented by the Consumer Price Index will be released from Switzerland, as inflation in Switzerland is stable and trending downward compared to other European countries.
The SNB does not particularly welcome the strength of the Swiss franc, so there is a possibility that the bank will take measures to counteract the current strength of the franc and the decline in inflation, so the markets are currently expecting the SNB to cut interest rates by 50 basis points during the next meeting.
It is also worth mentioning that this month is Thomas Jordan's last month as governor, will he do something memorable as his style has often been, or will he leave in peace and hold a quiet last meeting before being replaced by another governor of the bank.
While on Tuesday, the manufacturing Purchasing Managers ' Index will also be released from the United States.
Wednesday will be busy with events, as Australia's GDP for the second quarter will be released and expectations will rise.
The Bank of Canada will also announce its decision on monetary policy and expectations of a 25 basis point interest rate cut from 4.50% to 4.25%, as Canadian inflation data began to decline, with no immediate upside risks, another factor supporting the interest rate cut is the weak Canadian GDP, along with the labor market that has cooled, reducing the risk of inflationary pressures, The Bank of Canada is expected to keep the door open for further rate cuts until the end of the year, especially if the Fed also starts cutting interest rates this month.
On Thursday we will have an appointment with Reserve Bank of Australia Governor Michelle Bullock speaking at the ANNIKA Foundation in Sydney, where she will receive questions from the audience, eyes will be on her and will she make any comments about the latest inflation data, which slightly exceeded expectations in July, indicating that the RBA may need to wait longer before making the first interest rate cut.
Also on Thursday, we are waiting for the US economy to change in employment in the private sector ADP, then unemployment orders and the Purchasing Managers Index for the services sector will be released.
Finally, on Friday, the change in employment and unemployment rates will be released from Canada, as for the US economy, the average hourly earnings will be released, then the unemployment rate, and finally the change in employment in the government sector NFP.
This week's labor market data will play an important role in shaping the pace of future interest rate cuts by the US Federal Reserve, as the markets are confident that the Fed will cut interest rates at the September meeting, but the question remains whether it will be by 25 basis points or 50 basis points.
