Despite being in the middle of August, global markets are not taking a summer break. There are several key events and data releases that investors are watching closely, including potential US-Japanese intervention to support the yen and key economic data from the US.
US-Japanese Intervention
The Japanese yen has been languishing at four-decade lows, making fuel imports more expensive during an energy shock. This has prompted policymakers to consider intervention to stem the yen’s weakness. A rare joint US-Japanese intervention may have eased Tokyo’s concerns, but FX traders still have plenty of unanswered questions.
Economic Data
The US will release inflation data on Wednesday, which could add to growing pressure on the Federal Reserve to raise interest rates. Economists expect the July consumer price index to rise 3.4% year on year, while core CPI is forecast to increase 2.5% annually.
Global Market Trends
Investors are also watching developments in the Gulf conflict, with talks between Iran and Oman aiming to ensure safe passage through the Strait of Hormuz. The US president is keen to see a deal, with gas prices remaining above $4 a gallon and inflation a concern for voters.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
