Central Banks Take Center Stage as Key Economic Indicators Loom

The upcoming week in financial markets is expected to be driven by key economic indicators and central bank decisions. On Tuesday, final manufacturing PMI readings for major economies including Japan, the Eurozone, the U.K., and the U.S. will be released, along with Eurozone inflation data.

Wednesday's schedule includes Australia's GDP q/q and the RBNZ monetary policy announcement, which is expected to deliver a 25 bps rate hike. In contrast, the Bank of Canada is predicted to leave interest rates unchanged on Wednesday due to strong economic growth and near-target inflation.

The U.S. is also set to release key data points, including average hourly earnings m/m, non-farm employment change, and unemployment rate. Analysts from Wells Fargo forecast that non-farm payrolls will rebound to 80K in August, while the unemployment rate may rise to 4.2%.

On Friday, Canada will release its employment change and unemployment rate, with RBC analysts estimating a much more modest gain in August. The labor market remains elevated by historical standards, but there is still room for improvement.