The market sentiment deteriorated amid fresh US-China tensions. Investors remain cautious as increasing virus cases may damage economic activity again.
5 important events this week will bring us!
- British CPI (Wed, 11:30 MT (9:30 GMT time)) – According to forecasts, the indicator of consumer inflation will reach 2.0%. Higher figures will be supportive for the British pound.
- Canadian CPI (Wed, 15:30 MT (12:30 GMT time)) – Analysts anticipate the level of CPI for Canada to advance by 0.1%. If the actual figures are higher, the loonie will rise.
- FOMC rate statement (Wed, 21:00 MT (18:00 GMT time)) – The Federal Open Market Committee will release its monetary policy statement and announce the official rate. No changes to the current interest rate are expected. However, as the worries about the rate cut keep circulating, the projections by the Fed on the future changes to its monetary policy will be in the main focus of traders.
- The Monetary policy statement by the Bank of Japan (Thu, MT time morning hours) – If the most dovish central bank provides more hawkish comments this time, the JPY will go up.
- The monetary policy summary by the Bank of England (Thu, 14:00 MT time) – The interest rate is expected to stay at the same level of 0.75%. We need to pay attention to the tone of the statement amid the political uncertainties.
- According to US Commerce Secretary Wilbur Ross, there are low chances that the trade deal between the US and China will be reached during the meeting between US president Donald Trump and Chinese President Xi Jinping at G20 meeting in Osaka later this month.
- Bitcoin has reached the last May’s highs on Monday. The oldest crypto has been trading near the $9,300 level. Analysts mention the anticipation of Litecoin’s halving and the introduction of Facebook crypto as the bullish news which driving the digital asset.
- The crude oil futures have fallen down at the beginning of the week on the comments by the Saudi Energy Minister Khalid Al-Falih. He expressed hopes to extend output cuts by OPEC+ into the second part of the year.
Risk-on is back on the market. Riskier currencies and stocks are in favor. Gold is rising too as investors try to hedge.
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
The European central bank will publish the main refinancing rate and make a statement on Thursday, July 16, at 14:45 MT time. Also, the ECB’s press conference will be later at 15:30 MT time.
Optimism about the Moderna vaccine improved the market sentiment. Let’s have a closer look, what’s happening today.
The Canadian central bank will announce interest rates and make a speech on Wednesday, July 15, at 17:00 MT time. Also, the BOC press conference will be later at 18:15 MT time.