- On Wednesday the Fed Chairman Jerome Powell testified before Congress, continuing the dovish tone seen from June, as markets were looking for and had mostly discounted, though three was also apprehension that the tone could be less dovish in the wake of the robust June US Employment report, published in early July.
- The Chairman once more highlighted a lack of US inflationary pressures and economic headwinds globally, which was then reinforced by various Fed speakers later in the week.
- The market continues to anticipate a US interest rate cut at Meeting at the end of July, with possibility a 50bp cut, with further interest rate cuts expected this year.
- In the Forex markets the US Dollar endured a broad selloff, with the US currency weakening versus all major currencies after Jerome Powell’s testimony.
- The dovish Fed tone also sent the major US stock indices higher with the Nasdaq 100, Dow Jones Industrial Average and benchmark S&P 500 and all achieving new all-time highs in the past week.
Key this week
|Date||Key Macroeconomic Events|
|16/07/19||RBA Meeting Minutes; UK Employment report; US Retail Sales|
|17/07/19||UK Inflation report including key CPI; Canadian CPI|
|18/07/19||Australian Employment report|
|19/07/19||US Michigan Consumer Sentiment Index|
|Date||Key Earnings Events||Country|
|16/07/19||J&J Goldman Sachs Wells Fargo JP Morgan Burberry||US US US US UK|
|17/07/19||Bank of America Netflix IBM Severn Trent||US US US UK|
|18/07/19||Microsoft Morgan Stanley United Health||US US US|
|19/07/19||BlackRock American Express||US US|