Collinsonfx Weekly Marketing Commentary and Calendar

Monday, July 19, 2021

Weekly Market Commentary

The University of Michigan Economic Sentiment report slumped on Friday, contradicting the narrative of a rapidly improving economy and labour market in the USA. Inflation is starting to sink in and the implications for the Federal Reserve are dire. They will be forced to slow the massive QE infinity program, which will tighten monetary conditions. The US Dollar remains strong, with the EUR slipping below 1.1800, while the GBP plunged to 1.3750.
Commodity currencies also suffered, with the NZD trading below 0.7000 and the AUD crashing under 0.7400. Close attention will be paid to inflation, CPI and PPI numbers in the coming week and the ECB rate decision. They will not be changing any rates or monetary policy, as the weak growth in the EU, has reduced inflationary pressures.

Weekly Market Calendar

19/7 NZ Services PMI, EU Construction
20/7 NAHB House Market Index, Japan CPI, Australia RBA Minutes, German PPI, EU Current Account, US Building Permits/Housing Starts
21/7 NZ Dairy Prices, Japan Trade Exports/Imports, Australia Leading Index, Australia Retail Sales, US Weekly Mortgage Applications
22/7 France Business Confidence, ECB Rate Decision, Chicago Fed National Activity Index, US Weekly Jobless Claims
23/7 EU Consumer Confidence, US Existing House Sales, Kansas City Fed Manufacturing Index, Australia flash Manufacturing PMI, UK Consumer Confidence, UK/France/German/EU Services/Manufacturing/Composite PMI, US Manufacturing/Services/Composite PMI