Fed decision to shape global markets in the week ahead.

Highlights

• The outcome of the Federal Reserve's interest rate decision is crucial, as the market closely watches the economic projections and the Fed chair's statements.
• The current macroeconomic landscape will be defined by the private sector Purchasing Managers' Index (PMI) data.
• The Bank of England and the British Pound (GBP) are expected to encounter challenges throughout the week.

Dollar:

The Fed's interest rate decision, economic projections, and Fed Chair Powell's press conference will be the primary focus for the Dollar this week.

Investors are anticipating a possible pause in September and expecting the Fed to conclude its monetary policy tightening cycle.

Thursday's US jobless claims and Philly Fed Manufacturing Index will draw interest, but private sector PMIs on Friday may have a larger impact.

EUR:

The following week for the Euro is expected to be relatively quiet after last week's volatility.

Finalized Eurozone inflation data on Tuesday and German producer prices on Wednesday will be important factors to consider.

Preliminary private sector PMIs for France, Germany, and the Eurozone will influence the appetite for the EUR/USD.

Pound:

The Pound is likely to face a turbulent week ahead.

UK inflation figures on Wednesday and the Bank of England monetary policy decision on Thursday will be key events.

Retail sales and private sector PMI figures on Friday may further support expectations of a UK recession.

Loonie:

Housing starts on Monday and August inflation figures on Tuesday will impact the Canadian Dollar.

Retail sales figures on Friday will provide insights on the impact of central bank interest rate hikes.

Aussie Dollar:

The RBA meeting minutes on Tuesday and private sector PMIs will draw attention for the Australian Dollar.

China's economic woes and weakening labor market conditions will play a role in the RBA's decisions.

Kiwi Dollar:

Q2 GDP numbers on Thursday will be a focal point for the New Zealand Dollar.

Westpac Consumer Sentiment figures will also need consideration as a signal of demand outlook.

Japanese Yen:

Trade data from Japan on Wednesday will be significant for the Japanese Yen.

Inflation and private sector PMI numbers on Friday will influence the Bank of Japan's monetary policy decisions.

China:

The PBoC will set Loan Prime Rates (LPR) on Wednesday, but there are no other economic indicators for China this week.