On Wednesday, the USD/CHF pair retreated from a near one-week high of 0.8498.

The GBP/USD pair rose slightly on Wednesday. However, the pound's gains narrowed in the face of a series of weak UK macroeconomic data.

From a recession prediction perspective, this is a good report that symbolizes a soft landing for the United States.

The US Dollar/Swedish Krona (USD/SEK) exchange rate held near a fresh three-week high of 10.3943 on Tuesday.

US may be about to start cutting interest rates in order to keep its labor market.

On August 30, the offshore RMB rose more than 160 basis points against the US dollar during the day, rising above the 7.08 mark, and the onshore RMB rose above 7.09 against the US dollar. On August 29, the People's Bank of China conducted an open market business spot bond buyout transaction in the form of quantity bidding, buying 400 billion yuan of special treasury bonds from the primary dealers of the open market business. The market believes that the RMB exchange rate is mainly affected by the resonance of multiple factors at home and abroad. On the domestic front, the stabilization of China's economic fundamentals, the weakening of the US dollar and the enhanced attractiveness of RMB assets are the main support points. Internationally, the Federal Reserve's interest rate cut is also expected to provide support for the RMB exchange rate. Experts said that the current round of RMB appreciation and U.S. depreciation logic is not very relevant, more related to the British hedge fund CEO statement, the RMB or 10% appreciation.

Expectations of yuan appreciation are strengthening as the Fed's rate cut approaches, said Stephen Jen, chief executive of British hedge fund EurizonSLy capital, adding that Chinese companies may sell $1 trillion in dollar-denominated assets as the U.S. cuts interest rates, a move that could strengthen the yuan by as much as 10 percent. He argued that when the Fed cuts interest rates, the attractiveness of dollar-denominated assets will be eroded and could spur the return of $1 trillion (7.1 trillion yuan) in “bailout” funds as the interest rate gap between China and the US narrows. Following the Fed Chairman Powell issued the strongest rate cut signal, the Fed in September to start cutting interest rates is almost certain events. Local time on August 26, San Francisco Fed President Daley said the Fed is time to start cutting interest rates, adjust the policy has come, it is difficult to imagine that the September meeting will be unexpected.

This week is another crucial week for global markets, with the Jackson Hole Symposium set to be the main event.

Data from China and Germany could further influence global economic sentiment amid growing concerns about the U.S. economy.

On July 31, the Bank of Japan unexpectedly raised interest rates, earlier than the consensus expectations in September and announced plans to cut bond purchases, the yen strengthened sharply, the dollar/yen fell below 150, and the Chinese yuan soared nearly 300 points during the day. Thereafter, the Federal Reserve will announce the interest rate resolution, the market is expected to September the probability of the first cut in about 90%, the expectation of interest rate cuts to promote U.S. bond yields downward, making the dollar index continued to oscillate. Some analysts said that the yen turned around and appreciated does not mean that the yuan will follow the rapid appreciation, before the U.S. election, such as the dollar index due to risk aversion, the yuan is also difficult to maverick, the Japanese economy is still weak, the yen's strength is difficult to sustain.

The next week may be a critical one. The Federal Reserve and the Bank of England will focus on cutting interest rates in 2024, while the Bank of Japan will consider raising interest rates and reducing the purchase of Japanese treasury bond bonds.

On July 21st, current US President Biden announced his withdrawal from the 2024 presidential election. After the news of Biden's withdrawal was announced, there was no significant fluctuation in the market, and there was a strong wait-and-see sentiment.

The US service sector purchasing managers' index, second quarter gross domestic product, and inflation data released this week will affect investors' bets on multiple interest rate cuts by the Federal Reserve in 2024.

On Thursday morning, the US dollar rose to around 155.5 against the Japanese yen, setting a six week high. The market speculated that authorities may intervene again to support the yen.

Mark Sobel argued that Trump's re-election as president could threaten the dollar's global dominance.

As the "favorite to win the US presidential election" this year, Trump's chances of winning the election have also increased after being hit by a bullet.

For global financial markets, the next week may be a crucial one. The European Central Bank, the Federal Reserve, and the Chinese economy will be the focus.

According to the latest retail sentiment analysis, the outlook for the USD/JPY remains mixed, while the GBP/USD may decline.

In the third quarter, although the euro may recover to some extent, the market remains uncertain due to conflicting concerns about the French election and the Federal Reserve's loose policy.

DXY may rise at the beginning of the third quarter, especially during the French elections. However, if the Federal Reserve's initial interest rate cut expectation gradually becomes clear this quarter, DXY may fall later.