Weekly Market Preview
Thursday, July 20, 2023
Investors will be eagerly awaiting the July FOMC meeting, with close attention on the potential 25 basis point rate hike. This decision is perceived as significant, as it could mark the conclusion of the Federal Reserve’s tightening cycle. Market participants believe that the Fed may halt further rate hikes due to the accelerating decline in inflation levels in the US, which was evident from the lower inflation figures revealed in the June CPI report.
Traders and market participants will carefully listen to the Fed chair press conference to gain insights into the central bank’s future monetary policy direction. The outcome of the meeting could have a substantial impact on various financial assets and market sentiment.
Markets will also follow the upcoming ECB meeting with an anticipation that the central bank will raise rates by 25 basis points. These expectations have been reinforced by various hints from ECB officials.
Investors will be keen on the ECB president’s press conference, as they seek any forward guidance from the central bank. The focus will be to get any hint whether the ECB may consider pausing its rate hike cycle in the last quarter of 2023. It’s crucial to highlight that a hawkish tone adopted in the ECB’s statement or press conference would likely result in a positive impact on the Euro’s value against major currencies.
The bank of Japan is expected this week to keep interest rates unchanged in its upcoming meeting. However, there might be some tweaks in the yield curve control.
• EUR- Manufacturing & Services PMI (Jul)
• GBP- Manufacturing & Services PMI (Jul)
• USD- Manufacturing & Services PMI (Jul)
• USD- Consumer Confidence (Jul)
• AUD- Inflation Rates YoY (Q2)
• Fed interest rates decision
• Fed Chair press conference
• ECB interest rate decision
• ECB president Lagarde’s press conference
• USD- Durable goods orders (Jun)
• USD- GDP (Q2)
• AUD – PPI (Q2) & Retail Sales (Jun)
• Bank of Japan interest rates decision
• USD- PCE price index (Jun)