Strong data and important developments this week
This week is witnessing a wave of economic and political events that may determine the trends of global markets in the coming period, from the decisions of major central banks to the escalation of trade tensions and natural disasters.
Here we review the most important things that the markets are waiting for this week
1. central bank decisions under the microscope
Today, investors attention is focused on the US Federal Reserve, which is expected to keep interest rates unchanged, but the focus will be on Jerome Powell's hints about a possible rate cut in September.
The discussions are also expected to see rare opposition from some members of the committee in favor of easing monetary policy.
And it's not just the Fed, both the Bank of Canada and the Bank of Japan will announce their decisions this week, today will be the Bank of Canada's decision and expectations to fix the interest rate at 2.75%, and tomorrow morning will be our date with the decision of the Japanese interest rate and expectations also to fix the interest rate as it is near the levels of 0.50%.
2-trade tension escalates as Trump's deadline approaches
As the deadline set by former US President Donald Trump (August 1) for imposing new tariffs approaches, talks are continuing between the United States, China, India and South Korea in an attempt to avoid a trade escalation.
Despite the cautious optimism after the recent talks, the lack of a substantive agreement so far is keeping markets in suspense.
3-a loud earthquake shakes the markets
An 8.8-magnitude earthquake struck the Russian Kamchatka Peninsula, the strongest earthquake to hit the region in almost 70 years, prompting tsunami warnings and evacuations in coastal areas, especially in Japan and the United States.
This led to a sudden rise in safe haven currencies such as the Japanese yen and the Swiss franc.
4-the euro is trying to recover, but it is still under pressure
The euro rose slightly against the dollar, trying to make up for some of its monthly losses, as the markets evaluated the trade agreement between the United States and the European Union.
5-the results of the profits of the largest companies
This week investors are also turning to the earnings results of large companies, especially:
Microsoft, meta, Qualcomm, Ford.
Also the Swiss bank UBS (UBSG) in the financial sector.
6. jobs and inflation data
US jobs data on Friday, especially the non-farm payrolls report (NFP), will be the focus of traders ' attention, as it may strongly affect the Fed's monetary policy outlook.
We are also waiting for Thursday from the US economy from the Personal Consumption Expenditures index, which is the Fed's preferred indicator for measuring inflation.
The most important forecasts
- The Fed may keep the price, but the hints are the most important.
- Trade tension may return to the front as August 1 approaches.
- Natural disasters add an unexpected element to market movements.
- Earnings results may restructure stock movements.
It seems that stormy days are ahead for the markets, as these factors will determine whether the current optimism will continue or surprises will completely change the landscape.
