In addition, Fed Chair Powell is scheduled to deliver remarks on the economic outlook at the Greater Providence Chamber of Commerce Economic Outlook Luncheon in Rhode Island. Audience questions are expected, though no major policy signals are anticipated.
On Friday, Japan will publish Tokyo core CPI y/y, Canada will release GDP m/m, and the U.S. will report the core PCE price index m/m, personal income m/m, personal spending m/m, along with the revised University of Michigan consumer sentiment and inflation expectations.
Traders will be closely watching this week’s eurozone PMI data to gauge whether the economy is truly benefiting from the summer burst of optimism or slipping back into sluggish growth.
In Australia, the consensus for CPI y/y is 2.9% vs prior 2.8%. July inflation surprised to the upside at 2.8%, above the 2.7% market forecast. In the month, prices rose 0.9%, driven mainly by electricity, new dwellings, and holiday travel.
Housing inflation also picked up, with new dwelling prices up 0.4% as builders reduced discounts. Westpac expects a return to the 0.2% monthly trend in August, though margin rebuilding could keep upward pressure intact.
Westpac projects August CPI to rise just 0.1% m/m, though base effects will likely lift the annual pace to 3.1%. Risks tilt to the upside, particularly if homebuilders continue restoring margins and firming prices.
In the U.S., the consensus for new home sales is 651K vs prior 652K, and for existing home sales 3.96M vs prior 4.01M. The housing market remains sluggish, with sales activity hovering near historic lows amid high borrowing costs and a cooling labor market that weighs on demand.
Mortgage rates have eased to 6.26%, an 11-month low, but this is unlikely to trigger a quick rebound. Elevated borrowing costs continue to pressure existing sales, while new home contracts in August faced average rates around 6.6% alongside growing unemployment concerns. Forecasts point to another modest decline ahead, with new home sales expected to dip 0.6% to a 648K annual pace and existing sales seen down 1.5% to 3.95M, according to Wells Fargo analysts.
While durable goods orders and overall production have improved this year, growth is concentrated in a few industries rather than broad-based. Business sentiment is still weak, with many firms reluctant to commit to new capital projects amid policy uncertainty. The clearest strength continues to come from high-tech areas such as software and computers, where investment has proven more resilient.
Shipments data will also be in focus as a key gauge of Q3 business investment. After a July jump boosted by aircraft some giveback is likely in August. Still, core nondefense capital goods shipments are expected to hold steady, signaling a reasonable pace of equipment investment this quarter.
While core inflation remains below 2%, it is gradually edging higher, and the BoJ is watching household inflation expectations closely. Ueda downplayed the recent dip in short-term expectations, but acknowledged that elevated prices can weigh on households, underscoring the need for caution. Overall, the latest figures remain broadly consistent with the BoJ’s outlook.
While core CPI came in hotter at 0.3% m/m, the core PCE is expected to rise a cooler 0.2% m/m and 2.9% y/y, reflecting its lower housing weight and softer inputs from categories like airfares and healthcare. A print in line with expectations would reinforce the case for further Fed rate cuts in October and December.
This article was written by Gina Constantin at investinglive.com.Hence then, the article about market outlook for the week of 22nd 26th september was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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