FOMC decision will dominate the market this week even though rates are likely to stay stable. The possibility of conditions for tapering are possible but again unlikely, A sit and wait view is expected on Capitol Hill as the FED await more further data. The statement after the decision and the press conference are the most important part of the evening.
We also get the GDP’s of America and Europe both of which are expected to be strong so any disappointments are likely to illicit the bigger price moves.
Whilst infections are dropping again in Britain that’s not the case elsewhere and is contributing to a nervous market with a stable US$. Equity markets also under a little pressure as China reins in tech companies and attempts to exert control over markets as disparate as commodities to tech to education companies. Ultimately this pressure may rebound as the rest of the world is likely to have a dim view of this amount of meddling, thus full incorporation into global markets for Chinese companies and indeed their government is likely delayed.
In the commodities sphere we are trading recent ranges with exceptions such as copper which is again being bought after a technical breakout through trendline resistance at $9350. The other LME metals are coat tailing copper higher but at slower rates.
Oil is back above $70 and holding. Platinum and palladium have slipped from last weeks levels as no further bad news emanates from South Africa.
Date | Country | Figures | Expected | Previous |
July 27 | USA | Durable Goods Orders | 2.1% | 2.3% |
| USA | Consumer Confidence | 124.1 | 127.3 |
July 28 | UK | Nationwide house prices yoy | 12.1% | 13.4% |
| USA | FOMC rate decision |
|
|
July 29 | EUR /GER | Unemployment rate | 5.8% | 5.9% |
| USA | Initial Jobless claims | 375K | 419K |
| USA | GDP | 8.6% | 6.4% |
July 30 | EUR | GDP qoq | 1.5% | -0.3% |
| EUR | CPI yoy | 0.8% | 0.9% |
| EUR | Unemployment rate | 7.9% | 7.9% |
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