Investors are eagerly awaiting upcoming economic events that will shed light on the current state of various economies and potentially impact their trading decisions. One key event is the release of the first estimate of the US GDP next Thursday, which will provide crucial insights into the health of the US economy. Additionally, the core PCE index, personal income, and spending data will be released on Friday, offering further information on inflation and consumer behavior.
The preliminary PMIs for July, set to be released on Wednesday, will also be closely watched by investors. These PMIs will provide more up-to-date information on economic activity and could influence market sentiment regarding potential future rate cuts by central banks, including the Federal Reserve. A positive PMI reading could lead investors to rethink their expectations for a third rate cut by the Fed this year.
In addition to US economic data, the Eurozone and UK flash PMIs are scheduled for release on Wednesday. These indicators will offer insights into the economic performance of these regions and could impact the policy paths of the European Central Bank (ECB) and the Bank of England (BoE). The ECB has already hinted at a potential rate cut in September, while the BoE has seen reduced expectations for a rate cut in August following recent economic data.
Furthermore, the Bank of Canada is expected to announce its monetary policy decision on the same day. After cutting interest rates at its last meeting, the BoC may opt for another rate cut if inflation continues to remain subdued. This decision could influence the value of the Canadian dollar and provide insights into the central bank’s future monetary policy stance.
In addition to economic events, investors will also be closely monitoring earnings reports from tech giants such as Microsoft, Alphabet, Tesla, and Amazon. These reports can impact stock prices and market sentiment, providing valuable information for traders and investors.
Overall, the upcoming economic events, including GDP releases, PMI data, central bank decisions, and earnings reports, will play a crucial role in shaping market trends and investor decisions in the coming days. Traders should stay informed and be prepared to react to any surprises or developments that may arise from these key events.