Absolutely. Yeah. Another complex week for financial markets with a continuation of the developed market central bank activity that has taken center stage over the past couple of weeks. A topic we discuss in greater length in this week's blog, this week centering on the Bank of England. However, the complexity in global markets has been exacerbated by concurrent events in the U.S. A rating downgrade from Fitch that refocused markets on the fiscal trajectory of the U. S. And a refunding schedule from the Treasury highlighting the significant pickup in issuance to fund the fiscal deficit. Against all this, the debate around long term equilibrium rates and inflation have seen long end bonds come under acute pressure and the resultant high yields pressure the wider macro universe. A complex backdrop for financial markets with a couple of things in particular we're looking out for next week.

Firstly, following on from this week's more moderate payroll data in the U. S. and the awkward or disjointed macro settings we have outlined, a big focus for next week will be on market sentiment, especially against a likely summer holiday liquidity or participation deficit, and a period of relative quiet on the data front at the start of next week. Now, market stability and barometers of risk sentiment will be a key focus, tactical hats at the ready for coming days and weeks.

Secondly, markets get the chance to reflect on the Bank of England. A hike of 25 basis points to 5. 25% last week and a more dovish or from our perspective, at least sentiment from the press conference. From our perspective, the increasing focus on growth risks and the reduction in projected upside inflation risks. Especially as Bailey was very clear to categorize current policy settings as restrictive and having a weakening impact on activity are significant policy pivots, one that leads us to see the policy peak as a significantly lower than currently markets are pricing. The Chief Economist, Huw Peel, speaks on Monday. The economic narrative will continue to be a big focus for the UK.

And then lastly, on Thursday, we get the other key data print in the Fed's data dependent policy focus ,CPI. Markets expect a slight uptick in the annual measure to 3. 2% year on year in July. But market sensitivity to any data miss likely remains acute, especially against a backdrop of a more clear focus on the treasury yield curve. A big week for U. S. data, for U. S. rates, and wider market sentiment, as we say, against the potentially lower participation of summer markets.