Weekly Comment - Fed meeting and a barrage of data coming up

The week started with investors losing their cool over a slowdown in global growth as the Delta variant continued to rampage, but the panic soon faded and stock markets returned to record highs. Meanwhile, the EUR took some fire after the ECB locked itself into negative rates for longer. The coming week will be action-packed too, featuring a Fed meeting, earnings from the biggest tech firms, and a ton of crucial data. 

The highlights:

The main event will be the Fed meeting on Wednesday. Policymakers want to get the ball rolling on reducing their asset purchases but they also want to examine more employment data before making any real decisions, so we probably won’t get any fireworks at this meeting. As for the USD, the overall picture seems positive, especially against the EUR and JPY. 
  • It’s a huge week on the data front too, with America and the Eurozone reporting GDP numbers for the second quarter. 
  • Inflation readings will also be released in Australia, Canada, the US, and the euro area. 
  • In commodities, oil prices had an extremely volatile week as OPEC finally agreed to raise its production as the Delta variant hit the outlook for demand. Meanwhile, gold prices lost altitude as the dollar firmed and real yields rebounded. 
  • Finally, the earnings season will kick into top gear with Apple, Microsoft, Tesla, Google, Facebook, and many others releasing their quarterly results. 

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