Weekly Analysis (07-11 Aug 2023)

The upcoming week presents challenges for investors, as they must carefully navigate various factors. Besides considering the impact of the US CPI Report, they should also take into account statistical data from the UK, Germany, and China.
On Thursday, the US CPI Report and weekly jobless claims figures will be significant, affecting market sentiment. The US unemployment rate and wage growth remain concerns for the Fed, and the CPI Report that surpassed expectations could fuel bets on a Fed rate hike and reignite recessionary worries.
At the week's end, investors should also consider producer price index numbers and Michigan Consumer Sentiment figures, which will impact market dynamics. FOMC member comments will also play a role in influencing investor decisions.
On Monday, German industrial production numbers will draw interest, indicating a sharp increase in production that contrasts with the latest manufacturing PMI survey-based figures.
Other statistics include finalized inflation figures from Germany, France, and Spain, potentially affecting the EUR/USD pairing depending on revisions. The ECB Economic Bulletin will also be closely monitored for clues on the ECB's future actions.
For the Pound, investors will have a busy week, with the UK GDP Report on Friday being a focal point, along with manufacturing production figures. Other stats include July housing sector data and BRC Retail Sales Monitor numbers, but their impact on the GBP to USD pairing is expected to be limited.
With a relatively light economic calendar, trade data (Tue) will influence the Canadian Dollar early in the week, while crude oil prices and market risk sentiment will provide direction.
The Japanese Yen faces a quiet week, with household spending numbers for June being the main focus. The Japanese economy's momentum and consumption trends will be considered for the Bank of Japan's actions on yields and market risk sentiment.
The focus will be on the Aussie Dollar this week, with the July NAB Business Confidence Report (Tue) being the only significant report to consider. The limited economic calendar means that the currency's performance will be influenced by stimulus news from Beijing and economic indicators from China.