Market Sentiment Shifts Ahead of Key Economic Data Releases

The upcoming week of September 7-13 will see key data releases from major economies, including the US inflation figures for August on Thursday and Friday. The European Central Bank (ECB) meeting on Thursday is also expected to have a significant impact on markets.

In Japan, the GDP data for Q2 2026 is scheduled for release on Monday, with expectations of a positive growth rate. A higher reading than forecasted will boost the yen and Japanese stock indices.

On Wednesday, China's Consumer Price Index (CPI) will be released, which may trigger an acceleration in inflation and prompt the People's Bank of China to tighten monetary policy. Higher consumer inflation may positively impact the yuan, while a low result may exert pressure on it.

The ECB meeting on Thursday is expected to have a significant impact on markets, with expectations of a hawkish tone regarding monetary policy. A dovish tone in the statements will negatively impact the euro, while a hawkish tone will bolster it.