The Week Ahead: 26th – 30th July 2021

Overview for the Week Ahead

It’s set to be a busy week in the markets with the Federal Reserve meeting, a series of high-profile earnings, and some key economic data on the slate. While no policy changes are expected from the Fed’s two-day meeting more details will likely emerge on the tapering discussions that started in June. With equity markets poised at record highs, investors will be closely watching earnings from tech heavyweights and on Thursday investors will get a first look at second-quarter U.S. GDP growth, which is expected to be the peak of the post-pandemic recovery. Meanwhile, on Friday the eurozone is to release a slew of data, including reports on inflation, GDP, and unemployment.

Tesla is in the spotlight this week. The California-based electric vehicle and clean energy company is expected to report its second-quarter earnings of $0.94 per share, which represents year-over-year growth of over 113% from $0.44 per share seen in the same quarter a year ago.

The high-performance electric vehicle manufacturer would post revenue growth of about 90% to around $11.4 billion. The electric vehicle producer has beaten earnings three times in the last four quarters.

Cryptocurrencies popped to the top of recent ranges on Monday as short-sellers bailed out in the wake of a strong week and while traders hoped a handful of positive comments from influential investors might signal a turnaround in fragile sentiment.

Bitcoin rose as far as 12.5% to hit $39,850, its highest since mid-June during the Asia session, while ether hit a three-week peak of $2,344. On the heels of bitcoin’s best week in almost three months, the move put the squeeze on short-sellers.

Bitcoin was last up 8% at $38,064, putting it within sight of resistance around June’s $41,341.57 peak just a week after it was testing support at $29,500.

Ether was last up 5% at $2,304.

For the UK, it’s a particularly quiet week ahead on the economic calendar.

UK economic data is limited to housing sector data that should have a limited impact on the Pound.

A lack of stats will leave the Pound in the hands of COVID-19 news updates in the week.

This Week’s High Impact Events

The times below are GMT +3.

Monday 26^th July

14.00 – UK – MPC Member Vlieghe Speaks

Potential instruments to Trade: GBP Crosses.

Tuesday 27^th July

10.30 – Japan – BoJ Gov. Kuroda Speaks

Potential instruments to Trade: JPY Crosses. 

15.35 – Australia – RBA Deputy Gov. Debelle Speaks

Potential instruments to Trade: AUD Crosses. 

17.00 – US – CB Consumer Confidence

Potential instruments to Trade: USD Crosses. 

Wednesday 21^st July

04.30 – Australia – CPI q/q & Trimmed CPI q/q

Potential instruments to Trade: AUD Crosses. 

15.30 – Canada – CPI m/m

Potential instruments to Trade: CAD Crosses.

17.30 – US – Crude Oil Inventories

Potential instruments to Trade: USD & CAD Crosses.

21.00 – US – FOMC Statement, & Federal Funds Rate

Potential instruments to Trade: USD Crosses.

21.30 – US – FOMC Press Conference

Potential instruments to Trade: USD Crosses.

Thursday 29^th July

15.30 – US – Advance GDP q/q & Unemployment Claims

Potential instruments to Trade: USD Crosses.

17.00 – US – Pending Home Sales m/m

Potential instruments to Trade: USD Crosses.

Friday 30^th July

11.00 – Europe – German Prelim GDP q/q

Potential instruments to Trade: EUR Crosses.

15.30 – Canada – GDP m/m

Potential instruments to Trade: CAD Crosses.

15.30 – US – Core PCE Price Index m/m

Potential instruments to Trade: USD Crosses.

16.45 – US – Chicago PMI

Potential instruments to Trade: USD Crosses.

17.00 – US – Revised UoM Consumer Sentiment & Inflation Expectations

Potential instruments to Trade: USD Crosses.

04.00 (Sat) – China – Manufacturing PMI

Potential instruments to Trade: CNY Crosses.

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