United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann discuss recent volatility in USD/CNH after a sharp rebound and subsequent drop.

The Reserve Bank of New Zealand (RBNZ) is on track to deliver a follow-through interest rate hike, raising the Official Cash Rate (OCR) by another 25 basis points (bps) from 2.50% to 2.75% on Wednesday. 

UOB's Jester Koh note they raise their FY27 Gross Domestic Product (GDP) forecast for India to 7.2% from 6.8% after a stronger-than-expected 1QFY27 expansion of 7.8% year-on-year.

OCBC strategists Sim Moh Siong and Christopher Wong have recalibrated Asian FX forecasts slightly firmer against the US Dollar (USD), with more notable upgrades for KRW and MYR.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note that USD/SGD has retreated sharply after last week’s spike, but downside momentum remains limited.

Standard Chartered strategists Anubhuti Sahay and Saurav Anand revise their FY27 Gross Domestic Product (GDP) growth forecast to 7.2% from 6.6% following a robust Q1-FY27 print and strong high-frequency indicators.

Rabobank strategists highlight growing pressure on China’s trade model as US-led restrictions target links with Iran and Venezuela.

National Bank of Canada (NBC) strategists note that global equities, including the MSCI ACWI, remain on track for another positive quarter, helped by an August rebound.

ING economists Peter Virovacz and Zoltán Homolya see Hungary on a gradual but constrained growth path after Gross Domestic Product (GDP) rose 0.5% QoQ and 1.7% YoY in the second quarter.

The US President Donald Trump posted in hits Truth Social account that the US was striking Iranian targets near the Strait of Hormuz as Iranian’s were aiming to add sea mines in the Strait, which currently “has no mines.”

Iran’s international citing domestic reports. It was reported that explosions were heard in Chabahar and Bandar Abbas.

The US Treasury Secretary Scott Bessent said that he “emphasized the importance of sound formulation and communication of monetary policy to anchor inflation expectations, in a meeting with the Bank of Japan Governor, Kazuo Ueda.

United States 52-Week Bill Auction: 3.98% vs 3.88%

The US Treasury Secretary Scott Bessent said that Japan is taking the right steps for its economy, and that G20 finance ministers want more growth.

Commerzbank’s Dr. Ralph Solveen analyzes how the Saxony-Anhalt election and two subsequent votes in Berlin and Mecklenburg-Western Pomerania could strain Germany’s CDU/CSU–SPD coalition.

Deutsche Bank economists Sanjay Raja and Maui Brennan say the UK enters autumn as the fastest-growing G7 economy, helped by strong ICT and AI-related investment and improving productivity.

Commerzbank’s Dr. Vincent Stamer notes that Euro area headline inflation rose to 3.3% in August from 2.9% in July, driven mainly by higher energy prices linked to the Middle East conflict.

Federal Reserve Governor Michael Barr said inflation remains too high and warned that a rate hike could become necessary if price pressures fail to moderate soon.

Joachim Nagel, European Central Bank (ECB) Governing Council member and Bundesbank President, expressed confidence on Tuesday in the global economic outlook despite geopolitical tensions in the Middle East.

UOB’s Jester Koh expects the Reserve Bank of India (RBI) to deliver two consecutive 25bps rate hikes starting from the December 2026 Monetary Policy Committee (MPC) meeting, as headline inflation is projected to breach the upper end of the RBI’s 2–6% band by 3QFY27.

National Bank of Canada (NBC) strategists highlight that the S&P 500 has hit a fresh record high in August, supported by an exceptionally strong Q2 earnings season with roughly 50% year-on-year EPS growth.

Nordea strategists note that Euro-area flash inflation rose to 3.3% year-on-year in August, driven mainly by higher energy inflation, while core inflation edged down to 2.4% on weaker services.

MUFG’s Michael Wan highlights India’s strong GDP data, with Q1 FY2026-27 growth at 7.8% year-on-year versus 7.1% consensus. Resilient domestic demand, robust credit growth and supportive fiscal policy underpin his view that Indian rates are likely to grind higher.

Societe Generale notes that the Polish Zloty strengthened while domestic bonds sold off as August inflation and second-quarter Gross Domestic Product (GDP) exceeded expectations and the government presented its 2027 budget.

ING strategist Frantisek Taborsky reports that Polish inflation surprised to 3.4% on higher fuel prices, while food prices fell, and a busy data calendar looms for Central and Eastern Europe.

EUR/CAD continues its losing streak for the fourth successive day, trading around 1.6080 during the European hours on Tuesday. The currency pair continues to trade under pressure as the Euro (EUR) remains subdued.

Standard Chartered strategists Anubhuti Sahay and Saurav Anand expect the Reserve Bank of India (RBI) to deliver a total of 50bps of repo rate hikes in FY27, split between October and December 2026, citing resilient activity and hawkish August Monetary Policy Committee (MPC) minutes.

Societe Generale strategists note Brent has held above key moving averages near $85/84, keeping upward momentum intact as geopolitical tensions and higher energy prices drive a broader bond rout.

Here is what you need to know on Tuesday, September 1:

Michael Pfister at Commerzbank notes that several central banks, including the European Central Bank (ECB), have already raised rates following the inflation shock linked to the Iran conflict.