Interest rate cut is imminent:
The interest rate cut channel on September 19 is about to open. Whether it is a 25 basis point or 50 basis point cut, it marks the beginning of the current water release cycle, indicating that the capital side will benefit from a favorable environment in the long run.
Schedule of important economic data and events:
Wednesday 14:00: UK August CPI monthly rate and retail price index monthly rate released;
Thursday 2:00: Federal Reserve announces interest rate decision and economic forecast summary;
Thursday 2:30: Federal Reserve Chairman Powell holds a monetary policy press conference;
Thursday 20:30: US initial jobless claims for the week ending September 14 and September Philadelphia Fed manufacturing index released;
Friday 11:00: Bank of Japan announces interest rate decision;
Friday 14:30: Bank of Japan Governor Kazuo Ueda holds a monetary policy press conference.
The market's expectations for the Federal Reserve to cut interest rates by 25 basis points or 50 basis points in September are almost the same, with a probability of 50% each. Judging from the market reaction, a 50 basis point interest rate cut is welcomed.
However, we still need to wait and see whether the Fed will actually take this step.