Group 1 - Investors are awaiting key PPI and CPI data from the US for August, which will provide insights into inflation trends and potential Federal Reserve actions [1][3] - The British pound has strengthened against major currencies, driven by firm expectations of a Federal Reserve rate cut next week [1][3] - UK GDP growth is expected to stagnate after a 0.4% increase in June, with manufacturing and industrial production data also anticipated to remain flat [1][3] Group 2 - The US dollar is experiencing calm trading as investors digest a report indicating a weaker job market, with 910,000 fewer jobs added than previously expected [1][3] - The overall PPI is projected to grow steadily with an annual growth rate of 3.3%, while core PPI is expected to rise moderately to 3.5% [3][4] - The Federal Reserve is anticipated to initiate monetary easing, with traders expecting a 50 basis point cut to a range of 3.75%-4.00% [4]

Core Viewpoint - The global financial market is betting that the Bank of England will maintain a 4% base interest rate for the remainder of the year, driven by rising inflation and resilient economic growth [1][2] Group 1: Economic Indicators - Recent data shows that the UK's GDP grew by 0.3% in Q2, surpassing economists' expectations of 0.1% and the Bank of England's own forecasts [2] - The labor market is also performing strongly, with multiple indicators exceeding analysts' prior expectations, reinforcing the resilience of the economic fundamentals [2] Group 2: Market Reactions - Following the shift in policy expectations, the British pound has appreciated by 2.5% against the US dollar this month, making it the best-performing currency among the G10 [2] - Analysts attribute the pound's strength to the Bank of England's quicker end to the rate-cutting cycle compared to other major central banks, creating a favorable interest rate differential [2] Group 3: Future Outlook - Market participants are closely monitoring upcoming key data, including the July inflation report and preliminary Q3 GDP figures, which will inform the Bank of England's policy direction [2] - Most institutions expect the Bank of England to likely keep interest rates unchanged in the September meeting while assessing whether inflation will exert sustained upward pressure [2]