On Tuesday, the BoJ Core CPI y/y data is expected in Japan, providing insights into the nation's core inflation dynamics. Meanwhile, in the United States, attention will be on the release of Existing Home Sales data and the Richmond Manufacturing Index.

Moving to Wednesday, New Zealand is set to unveil figures for Retail Sales q/q, including Core Retail Sales q/q data. Additionally, it's a day for Flash Manufacturing PMIs and Flash Services PMIs, with data being released for Australia, the eurozone, the United Kingdom, and the United States, offering key insights into the health of manufacturing and service sectors. In the U.S., New Home Sales data will be disclosed, providing a view on the real estate market.

On Thursday, the focus shifts back to the United States with the release of Unemployment Claims figures and Durable Goods Orders m/m data. It's also noteworthy that this day marks the beginning of the Jackson Hole Symposium, a significant economic event.

On Friday, the week will conclude with the U.S. Revised University of Michigan (UoM) Consumer Sentiment and the Revised UoM Inflation Expectations data. It's also the second day of the Jackson Hole Symposium, with highly anticipated speeches by Federal Reserve Chair Powell and ECB President Lagarde.

Japan's Tokyo CPI is expected to experience a slight decrease, moving from the previous 3.0% to 2.9%. Analysts suggest that if inflation remains in the 3.0% range, there's a possibility that the BoJ might consider making minor adjustments to its monetary policy.

According to ING analysts, the recent weakness of the JPY is driven by the yield gap which didn't account for the recent economic recovery and elevated inflation. As such, the move doesn't align with the BoJ's position that FX reflects fundamentals of the economy. As a reminder, the GDP data for Japan printed way above expectations.

Shifting focus to the United States, there's a consensus among experts that Existing Home Sales figures will experience a slight dip, moving from 4.61 million to 4.15 million. Existing home owners are reluctant to sell their properties and move into new ones as they would have to pay much higher mortgage rates than their current ones. The resulting supply scarcity pushes existing home prices up and also puts pressure on potential buyers who are faced with higher prices as well as elevated financing costs leading to a slowdown in buying activity.

Analysts at Westpac anticipate that New Zealand's retail sales will likely show a modest decrease of -0.1% (previously -1.4%). Nominal spending might register a very limited gain, suggesting consumer purchasing power has been adversely affected by high interest rates and an inflation rate above target.

In the eurozone, there are expectations that the Manufacturing PMI may decline from 42.7 to 42.4, and the Services PMI is also anticipated to drop from 50.9 to 50.4. The eurozone's economic performance has been challenged since the beginning of the year, but since July, there has been a noticeable deterioration in the data, and this trend is expected to persist into the current month. Both the manufacturing and services sectors are experiencing contractions, although services are still holding on to expansionary territory. Overall, consumer activity has decelerated over the past few months.

Turning to the United Kingdom, the consensus regarding PMI figures suggests a decline in both the manufacturing and services sectors as well. The manufacturing sector is likely in full recession, and while the services sector has managed to remain in expansionary territory due to lower commodity prices, activity in this sector is also expected to soften. In the UK, elevated inflation remains a significant challenge, putting pressure on consumer spending and raising concerns about the economic outlook.

The new home sales market in the U.S. has experienced a generally positive trend over the past six months being up 23.8% y/y. Forecasts suggest that the new home sales data this week is expected to continue this trend, with an increase projected from 697K to 708K. Despite high mortgage rates, builders have several options to incentivize home buyers, such as price cuts and rate buydowns. Moreover, the high prices and low supply in the existing homes market have pushed many buyers to opt for new constructions.

The consensus for the U.S. unemployment claims is for a rise from 239K to 241K and core durable goods orders m/m are expected to drop from 0.5% to 0.2%. It's anticipated that durable goods orders in general will see a drop of -4.1% after 4 consecutive months of growth and a +4.6% jump in June. The rise last month was likely due to a surge in non-defense aircraft and parts orders, which is normally a temporary occurrence.

The main event for this week will be Chair Powell's speech at the Jackson Hole symposium. The theme for this year is "Structural Shifts in the Global Economy." The schedule is not yet available, but the event could include discussions about growth, inflation and consumption patterns.

This article was written by Gina Constantin.