Last week, the European Central Bank pledged to keep interest rates at record lows for even longer, as widely expected.
Delta coronavirus variant is the highest risk in the market. German government fears the number of new coronavirus cases in Germany could soar to 100,000 a day in about two months unless many more people get vaccinated and those who refuse may face restrictions.
Looking ahead, keep your eye on the Fed Monetary Policy Meeting this week. The Federal Reserve is expected to leave its benchmark interest rate unchanged. The meeting will give markets new guidance about monetary policy outlook.
The decision will be scrutinized for any mention of the timeframe for tapering its asset purchase program, although Chairman Jerome Powell made it clear in his recent testimony to Congress that the U.S. economy still needs the central bank full support.
Besides the Fed rate decision, this week calendar also features U.S. data on GDP growth, New Home Sales, Durable Good Orders and PCE inflation.
Focus on US GDP number on Thursday. Economists predict that GDP growth is still strong at 8.6% annualized. This would mark the recovery of all the lost output caused by the pandemic and could be the peak of the post-pandemic recovery.
On Friday, the EU second-quarter GDP data and inflation data will be published
25 Jul 21 (Sun)