The Asia-Pacific session today includes important updates like Japanese Machine Orders and trade statistics, followed by the Chinese Loan Prime Rate (LPR). The Reserve Bank of New Zealand is set to announce updates at 12:00 AEST, with a press conference following at 13:00 AEST. In early European trading, the United Kingdom will release its inflation data for July. We can also expect final Consumer Price Index (CPI) figures for Europe.

United States Session Highlights

During the U.S. session, the Economic Information Administration (EIA) will release data alongside a 20-year bond auction. We’ll also see the release of the Federal Open Market Committee (FOMC) meeting minutes. For derivative traders, the FOMC minutes will be critical. They may provide clues about interest rate changes as we near the year’s end. The latest U.S. CPI data for July 2025 shows inflation steady at 2.8%. The market is split on whether there will be another rate cut before Christmas, increasing volatility in interest rate futures and S&P 500 options. In Europe, inflation data is vital for trading EUR and GBP derivatives. UK inflation remains high, with the ONS reporting it at 3.1% in June 2025, prompting the Bank of England to adopt a cautious stance—unlike the European Central Bank. Notably, the ECB’s first rate cut in June 2024 initiated a policy divergence that is still relevant today.

Focus on the Loan Prime Rate Decision

We are closely monitoring China’s Loan Prime Rate decision as it will influence sentiment around commodities and currencies like the Australian dollar. Following a disappointing 4.5% GDP growth in Q2 2025, another rate cut is widely expected to boost the economy. Any delay could lead to a risk-off sentiment, making put options on mining stocks and the Aussie dollar more appealing. The EIA data will provide short-term trading opportunities in the energy sector, which reacts quickly to inventory levels. WTI crude oil has held steady around $85 a barrel for several weeks, so a significant increase or decrease in inventory could lead to a breakout. The 20-year bond auction will also help gauge long-term inflation expectations, affecting everything from Treasury futures to swap spreads. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now