Watch this weekMonday, August 29: Australian retail sales for JulyTuesday, August 30: Eurozone August Economic Sentiment Index, German August CPI, U.S. July Job OpeningsWednesday, August 31: China August Official PMI, Eurozone August CPI, US August ADP, Canada Q2 GDPThursday, September 1: China August Caixin Manufacturing PMI, Eurozone August final PMI, US August ISM Manufacturing PMI, US initial applicationsFriday, September 2: US non-farm AugustWhat to expect from the world's central banksIn a brief speech on Friday, Powell reiterated his determination to fight inflation. He doesn't think one month's improvement is enough to convince the central bank that inflation is falling, so he doesn't rule out a 75 basis point rate hike in September (based on the next three weeks of data) and keeping rates above neutral for a long time (the restrictive zone), even if it costs the economy a recession.Powell's speech was in line with the recent stance of other Fed officials, and together dispelled market expectations of a "Fed policy shift."The U.S. two-year yield rose to 3.45 percent, its highest since 2007, while the 10-year yield held steady above 3 percent. Futures markets suggest the Fed funds rate will reach 3.81% in March.Stock marketAll three major U.S. stock indexes tumbled on Friday. The dovish expectations that had underpinned a 20 percent rally in stocks from June have evaporated after the central bank's annual meeting. Further steep rate hikes and the skyrocketing probability of a recession triggered a market sell-off. Major indexes have broken through rising channels and long-term averages.S&p 500 (US500)This week will also see tests of month-end rebalancing, the FED's full-speed reduction in September (tightening liquidity), and non-farm data. The market expects 300,000 jobs to have been added in August, with the unemployment rate holding at 3.5% and hourly earnings growth edging up to 5.2%. A strong labor market is one reason the Fed has been able to be bold in raising interest rates.The mainland and Hong Kong markets took a noticeable hit at the start of trading on Monday, but the one-trillion-yuan stimulus package and a regulatory agreement on auditing cooperation between China and the United States helped offset some of the negative factors in peripheral markets. Major indexes in Asia Pacific were all down more than 2 percent in early trading.Gold and crude oilGold fell more than 1% on Friday, erasing all the gains from previous sessions. With the FED reiterating its hawkish stance and the dollar strengthening, the outlook for gold is bearish. If a break below 1727 does not look like a very solid support, gold could fall again towards the year's low of 1680.Oil prices jumped 3 percent last week, buoyed by OPCE's signal of production cuts. However, the progress of the Iran nuclear deal, the global economic slowdown, and the strong dollar have been the factors limiting the rebound of oil prices to the previous high. WTI oil prices are expected to experience a period of volatility around $95, breaking above 100 or below 85 will start the next phase of the trend.Foreign exchangeThe U.S. Dollar Index (USDX) jumped to a new 20-year high after opening at 109 on Monday. This week's better than expected PMI and non-farm data could spur further gains, while public comments from a number of Fed officials are expected to keep the hawkish stance to the end.The euro closed below parity last week, and a longer upward line on Friday suggested stronger resistance around parity. The price of natural gas in Europe has soared by 40% in a single week, and the price of electricity in France and Germany has risen by 70% in a single week, setting new record highs every day. A falling euro and soaring energy prices have created a vicious circle, made worse by heat waves and droughts. The European Central Bank seems to be considering a 75 basis point rate hike in September, but that won't stop the eurozone from falling into recession, nor will it stop the euro from falling. Eurozone CPI is expected to hit 9% this week.EURUSDAfter the US/day broke through 137.46, the next target for the bulls is clearly the July high of 139.38.The Australian dollar rose slightly last week on the back of a rebound in commodity prices such as iron ore and China's stimulus measures. However, at the moment when risk sentiment is falling across the board, the outlook for commodity currencies is still worrying, and the support around 0.6720 is of concern this week.The material presented here has not been prepared in accordance with the legal requirements aimed at promoting the independence of investment research and is therefore considered for market communication purposes. 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