Dear Reader,

Today's overview of economic news and market action:

• • Some volatile trading conditions last week on markets
  • Flash August PMIs prompted a fall in bond yields
  • As well as some downward pressure on some of FX majors
  • Overall though, dollar held the upper hand
  • And was underpinned by hawkish Powell comments heading into the weekend
  • EUR/USD starts this week down near $1.08, GBP/USD is down at $1.26
  • Some key data releases ahead this week
  • Including US payrolls, Core PCE inflation and Eurozone inflation

Still Flashing Amber

 Surging inflation combined with a marked tightening of monetary policy, amid an environment of weakening confidence levels and heightened geo-political tensions, especially in relation to Ukraine, saw the world economy slow sharply during 2022

Rate Outlook Moves to Higher Ground

Market attention this year has been very much focused on hikes in central bank rates and when they might end. Futures contracts indicate that traders believe US rates have now reached a peak and the ECB will deliver just one more hike this autumn.