Three markets to watch next week (08.09.2023)

September FOMC decision is looming large but there is still on final key piece of US data to be released and it will be released next week - US CPI report for August! Apart from that, traders will be offered a number of top-tier US reports as well as monthly activity data from China and ECB rate decision. Be sure to watch GOLD, EURUSD and COPPER in the week ahead. 

GOLD

US CPI data for August - the final piece of key US data ahead of the September FOMC decision - will be released next week on Wednesday, 1:30 pm BST. Markets expect another month of a higher headline reading with the main CPI gauge rising from 3.2% YoY in July to 3.6% YoY in August. On the other hand, core measure is seen dropping further, from 4.7% YoY in July to 4.3% YoY. Reading will likely shape final expectations ahead of FOMC meeting (September 20, 2023) and should those become more hawkish, GOLD and other precious metals may find themselves under pressure.

EURUSD

While US CPI print is a key macro event of the day, there are also a number of other top-tier US releases scheduled next week. Those include retail sales for August (Thursday, 1:30 pm BST), PPI for August (Thursday, 1:30 pm BST) and flash University of Michigan data for September (Friday, 3:00 pm BST). On top of that, traders will get a rate decision from the ECB on Thursday, 1:15 pm BST but no change is expected. Nevertheless, elevated volatility on EURUSD is likely to be present.

COPPER

China has announced a number of economic support measures recently but it did not manage to support sentiment on the domestic stock market or base metal markets. A fresh set of monthly activity data for August from China - industrial production, urban investments and retail sales - will be released this Friday at 3:00 am BST. While industrial production dynamics are expected to improve compared to July, weakening is expected in retail sales. Better-than-expected data may help COPPER snap a downbeat streak.