Keep Your Eye On ECB Rate Decision

Keep Your Eye On ECB Rate Decision

Last week, August payrolls came out at 315K, dropping from an downward revised 528K in July, and just above the 298K consensus estimate.

The US unemployment rate came in well above expected, printing at 3.7%, missing expectations of 3.5%, and above last month's 3.5%

Data from the Institute for Supply Management (ISM) showed U.S. manufacturing grew steadily in August as employment and new orders rebounded.

Futures markets have priced in as much as a 75% chance the Fed will hike by 75 basis points at its September policy meeting.

In the upcoming week, watch out for on the ECB Monetary Policy Meeting this week. The European Central Bank meets on Thursday, in a meeting that is expected to see a second large rate hike. 

Inflation in the Eurozone, already at record highs, rapidly approaching double digits. The ECB meeting will give markets new guidance about monetary policy outlook. 

Fed Chair Jerome Powell is to speak at a Cato Institute conference on Thursday and investors will be on the lookout for any indications that the Fed is leaning towards another 75-basis-point rate hike at its September 20-21 meeting or whether a 50-basis-point hike may be on the cards

Moreover, in the US, the Institute for Supply Management publishes its August services PMI on Tuesday, with economists expecting a reading of 55.5