Markets Eye US PCE, PMIs & Fed Commentary Next Week.

Looking Ahead: US PCE Data, PMIs, and Fed Commentary Expected to Guide Market Sentiment Next Week.

The US Dollar (USD) rebounded this week, recovering from three-year lows to post modest weekly gains after the Fed’s rate cut and Chair Powell’s upbeat remarks. The US Dollar Index (DXY) extended its winning streak to a third session Friday, nearing the 98.00 mark.

In the U.S., the economic calendar begins September 22 with the Chicago Fed National Activity Index, followed by Current Account data (Sept 23), preliminary PMIs, the Richmond Fed Index, and API crude oil inventories. MBA Mortgage Applications (Sept 24), New Home Sales, and the EIA report will follow. Weekly Jobless Claims (Sept 25) come alongside Durable Goods Orders, final Q2 GDP, Existing Home Sales, and Wholesale Inventories. The PCE release on September 26 will wrap up the week, accompanied by the final U-Mich Consumer Sentiment.

EUR/USD still managed small gains, extending its three-week positive streak despite renewed USD strength. Key European data include the EC’s Consumer Confidence (Sept 22), HCOB PMIs (Sept 23), Germany’s IFO Business Climate (Sept 24), GfK Consumer Confidence (Sept 25), ECB M3 Money Supply, and Inflation Expectations (Sept 26).

GBP/USD ended sharply lower, retreating to 1.3460 after topping 1.3700 midweek post-Fed. UK data highlights include flash PMIs (Sept 23), CBI Industrial Trends, Car Production (Sept 25), and CBI Distributive Trades.

USD/JPY advanced but remains capped by the 200-day SMA near 148.50. Japan will release flash PMIs (Sept 24), BoJ Minutes (Sept 25), Tokyo Inflation, and weekly bond investment data (Sept 26).

AUD/USD reversed above 0.6700, closing weaker after three weekly gains. Australia’s data docket features flash PMIs (Sept 23) and the Monthly CPI Indicator (Sept 24).

Central Banks & Fedspeak:

• Sept 22: Fed’s Williams, Musalem, Barkin, Hammack; BoE’s Pill, Bailey.
• Sept 23: Fed’s Bowman, Bostic, Powell; ECB’s Cipollone; BoE’s Pill.
• Sept 24: Fed’s Daly; ECB’s Machado; BoE’s Greene; Fed’s Goolsbee, Williams, Bowman, Daly.
• Sept 26: Fed’s Hammack, Barkin, Bowman, Musalem; ECB’s Lagarde; BoJ’s Noguchi.
• Sept 27: Fed’s Bostic.

Upcoming Central Bank Meetings:

• Riksbank (Sept 23) – rates steady at 2.00%.
• MNB (Sept 23) – rates steady at 6.50%.
• SNB (Sept 25) – expected to keep rates at 0.00%.