US500
The U.S. CPI report for August will be the last significant report before the FOMC meeting on September 17-18. Investors will be closely watching the readings, which could determine the scale of rate cuts at the September meeting. In July, inflation fell below 3.0% year-over-year for the first time (2.9% y/y), and this trend is expected to continue in August, which, combined with weaker labor market data, could encourage the Fed to adopt a more aggressive easing policy. Therefore, it will be worth watching the US500 index, which is currently near historical highs.

EURUSD
On Thursday, the European Central Bank (ECB) will announce its decision on interest rates. After a summer break in rate cuts, the ECB is expected to return to easing and lower the refinancing rate by another 25 basis points to 4.00%. Currently, a cut is fully priced in. However, investors' attention will focus more on hints regarding the coming months due to the ongoing uncertainty. Additionally, volatility in the EURUSD pair will also be influenced by the aforementioned U.S. CPI report. The exchange rate is currently near the upper boundary of the consolidation channel that began in 2022, so volatility in the EURUSD pair could be particularly high this week.

EURGBP
Investors interested in the UK market will receive several important macroeconomic reports this week. On Tuesday, the labor market report is scheduled for release, followed by the GDP report and industrial production data on Wednesday. The Bank of England (BOE) is almost certain to keep rates unchanged at its next meeting in September. However, the possibility of a rate cut remains real for the November 7 meeting, with the odds currently at over 120% for a 25 basis points cut. Weak economic data this week could certainly increase the chances of policy easing and affect the EURGBP exchange rate.

(Sources: XTB.com)