The following is a rewritten and expanded version of the original article titled “3 Markets to Watch Next Week (29.08.2025)” by XTB Analysts, originally published on XTB.com.
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Title: Key Financial Markets to Watch in the Week Ahead: August 29 – September 5, 2025
Author: Adapted from the original article by XTB Analysts
As August winds down and global investors anticipate September’s market dynamics, a few key markets are emerging as focal points in next week’s trading calendar. With macroeconomic indicators releasing from the US, China, and Europe, market participants will be closely monitoring how central bank policies, geopolitical tensions, and global supply-demand dynamics influence market sentiment.
This article dives into the three significant markets that traders and investors should be paying attention to during the week starting August 29, 2025. These include the US Dollar Index (DXY), the German DAX (DE30), and crude oil markets (WTI). All three represent different facets of global financial movements — currency strength, regional equity sentiment, and commodities demand, respectively.
US Dollar Index (DXY): Fed in the Spotlight Again
After a summer of mixed performance, the US Dollar Index (DXY) finds itself at a critical juncture. Traders have been closely following economic data releases as the US Federal Reserve continues to signal a data-dependent path for the remainder of 2025.
Key Influencing Factors for DXY:
– Jackson Hole Debrief:
The Federal Reserve’s annual symposium at Jackson Hole, which concluded on August 24, acted as a platform for policymakers to reaffirm their caution in managing inflation expectations. Fed Chair Jerome Powell reiterated the need to monitor upcoming data before making further decisions on interest rate adjustments. The speech was perceived as slightly hawkish, with markets speculating that the central bank may not be done tightening policy this year if inflation remains sticky.
– Labor Market Data:
Of particular importance in the upcoming week will be the US Nonfarm Payrolls (NFP) report, due Friday, September 1. A robust jobs report could reinforce the Fed’s hawkish stance. Analysts are forecasting a gain of approximately 170,000 jobs, with unemployment rate expectations stable at 3.6 percent.
– Inflation Measures:
The week will also feature the release of PCE (Personal Consumption Expenditures) inflation data, the Fed’s preferred inflation gauge. A higher-than-expected reading could lift DXY as traders price in further policy tightening.
– Dollar Technicals:
Technically, the DXY has been testing a resistance area near 104.00. A bullish breakout may signal momentum for a further rally toward 105.00–105.50. However, if data soften, a pullback toward the 102.00–102.50 support levels is plausible.
What to Watch in the Coming Week:
– US Nonfarm Payrolls (Friday)
– US PCE Inflation (Thursday)
– US ISM Manufacturing PMI (Wednesday)
– Market reaction to post-Jackson Hole Fed speakers
Overall Outlook:
Traders should remain aware that the US Dollar’s direction will likely hinge on next week’s macroeconomic data slate. Strong economic readings will increase expectations for a final rate hike in 2025, pushing DXY higher. Conversely, signs of softer growth could drive a downward correction in the greenback.
German DAX (DE30): European Equities Under Pressure
The German DAX has been volatile in recent weeks, reflecting investor concerns about slowing economic growth in the Eurozone’s largest economy. Germany’s industrial sector has been lagging due to global demand weakness, high energy prices, and persistent inflation concerns across the euro area.
Key Developments Affecting the DAX:
– Economic Data Weakness:
Recent GDP figures showed that Germany is flirting with stagnation. Industrial output and factory orders have experienced significant deterioration, raising fears that the country might
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