Posted by Sanath Alia

News producer in CNBC Arabia

Financial markets open this week with the release of Japan’s second-quarter GDP data, which will boost growth in the Asian economy ??? The reading comes after Japan’s economy shrank in the first quarter, compared with estimates of 0.6%. After coming under heavy pressure in the past month, the yen is taking some comfort in its movements. Inflation data from several countries is expected to dominate the agenda this week, led by Britain and the second reading of the euro zone, while markets will monitor some central banks’ decisions on interest rates and focus on New Zealand. In addition to central bank minutes. In the US stock markets, markets are watching the results of US retail companies with continued control of inflation and higher costs in corporate decisions.

Financial markets open this week with the release of Japan’s second-quarter GDP data, which will boost growth in the Asian economy ??? The reading comes after Japan’s economy shrank in the first quarter, compared with estimates of 0.6%. After coming under heavy pressure in the past month, the yen is taking some comfort in its movements. Inflation data from several countries is expected to dominate the agenda this week, led by Britain and the second reading of the euro zone, while markets will monitor some central banks’ decisions on interest rates and focus on New Zealand. In addition to central bank minutes. In the US stock markets, markets are watching the results of US retail companies with continued control of inflation and higher costs in corporate decisions.

Central Bank Results

Markets are closely watching central bank meetings this week as the New Zealand central bank is expected to announce its decision on interest rates on August 17, with the New Zealand dollar under watch amid analyst expectations that the central bank will hike. Interest rates hit 50 basis points for the fourth time in a row in a year. To reach 3%, the highest levels since August 2015. As for Turkey, on August 18, the Turkish central bank is expected to keep interest rates unchanged. Even as inflation rates continue to rise, the central bank will keep interest rates unchanged for the eighth consecutive meeting at 14%, hitting a record high of 79% in June, a 24-year high. Despite its temporary recovery at the end of last year thanks to the intervention of the Turkish government at the time, the Turkish lira has been hit hard lately, with the currency very close to its historic lows.

Federal Minutes

Not far from the central banks’ decisions, the minutes of the US Federal Reserve meeting are expected to be released on the evening of August 17, with a particular focus on statements from central bank members. Federal Reserve Chairman Jerome Powell said at his last meeting that the central bank’s decision to raise interest rates will be based on economic data, and at each meeting separately, markets will monitor any hints about future interest rates and balances. Moving in the event of positive data from the economy, especially as inflation fell to 8.5% in July according to the latest data, this caused the markets to rise, even though the pre-inflation data estimates the interest rate was only 50 basis points. It should be raised by 75 basis points.