Weekly Market Watch - JP Morgan (The week ahead)

Policy rates and inflation data are in focus next week. G10 inflation is again expected to come in soft, which in turn is suppressing rate expectations. Central banks will be meeting in the U.S., Japan, Norway, and South Korea this week. All are expected to be on hold, although, with the recent positive data from Norway, we could see a more hawkish tone out of the Norges Bank. Within the Euro area, we have Greek Q2 GDP data on Wednesday, and the consensus expects a decline of 1.1% quarter-on-quarter and 3.4% year on-year. 

Weekly Market Watch - JP Morgan

Eurozone currencies extended their gains for another week. Global PMI and U.S. ISM data was
released on Monday and surprised to the upside, relative to market expectations. As the week began rumors of a “hard landing” for China were widely discussed, but manufacturing PMI was roughly in line with consensus. Despite the upside surprises in global manufacturing, the data highlighted an important divergence in growth, with China PMI and U.S. ISM declining and Eurozone PMI holding steady.