Global Markets Bracing for Economic Data Releases and Central Bank Meetings

The upcoming week is packed with economic data releases and central bank meetings that could impact global markets. The US Federal Reserve's August nonfarm payroll numbers are due on Friday, which will provide insight into the country's labor market.

According to a Reuters poll, employment is expected to have climbed by 45,000 jobs in August, after falling by an unexpected 23,000 in July. However, data this week has shown that inflation continues to run above the Fed's 2% target.

The US Treasury market is also under scrutiny, as traders may test Treasury Secretary Scott Bessent's resolve to limit a rise in US borrowing costs. The idea of 'dollar debasement' has gathered pace in recent days, with investors pricing in worries about a $40-trillion debt pile and policy uncertainty.

The Eurozone is also facing inflation concerns, with August numbers expected to hit 3.3%, its highest in nearly three years, driven by elevated energy costs. The European Central Bank (ECB) will be watching readings excluding volatile food and energy prices, which are forecast to be closer to its 2% inflation target.

On Wednesday, the Reserve Bank of New Zealand (RBNZ) is expected to hike interest rates to 2.75%, as the economy grapples with mounting price pressures. Meanwhile, the Bank of Canada will keep rates on hold, as price pressures remain contained despite trade tensions with the US.