The markets witnessed sharp fluctuations during the past week ending Friday, the ninth of July (July), despite the weak economic calendar during the week, but the rise in fears in the markets and anxiety, which pushed the yield on US bonds to decline by more than 8%, caused a clear decline in risk appetite during the week and thus We witnessed strong fluctuations at the beginning of the week before stabilizing at the end of the week.

The US dollar, after it started the week recording strong gains, ended the week with a decline at closing at 92.07 levels, after it tested 92.80 levels, and after a larger number of monetary policy makers in the US Federal Reserve showed, according to the minutes of the previous meeting, that asset purchases amounting to 120 billion should be reduced. Dollars per month sooner than expected, but it seems that the recent data released by the US economy sees the opposite, as the services sector issued by the Institute for Supply Management declined less than market expectations. Therefore, the markets will await the data released during the current week, especially US inflation and retail sales data to study the situation More .

The new mutation of the Corona virus, Delta, and the speed of its spread around the world from Britain to Australia to the United States of America raises the state of anxiety in the markets as well and reduces the appetite for risk.

Three central banks lead the week’s events:

The Reserve Bank of New Zealand:

The Reserve Bank of New Zealand will announce its monetary policy in the Asian session on Wednesday morning, July 14, as the bank is expected to keep its monetary policy unchanged and keep interest rates at 0.25% until the bank’s inflation and employment targets are achieved while maintaining asset purchases at $100 billion. The head of the Reserve Bank of New Zealand, Orr, hinted that he does not rule out raising interest rates and changing monetary policy by the end of next year 2022, coinciding with the rise in inflation that is higher than the target in the same period, and therefore the markets will await the bank’s governor’s statements during the current week to see if he still sees this matter or not.

The New Zealand economy recorded a growth of 1.6 percent in the first quarter of this year ending in March, according to data released on Thursday, June 17, after recording a decline of about 1 percent in the last quarter of last year, exceeding expectations that it would record a growth of about 0.5 percent.

Canadian Central Bank:

The Central Bank of Canada will meet on Wednesday, June 14 in the American session to announce its monetary policy, as it is expected to keep its monetary policy and interest rates 0.25% unchanged and to maintain the current quantitative easing program, 3 billion Canadian dollars per week.

The latest data released by the Canadian economy last Friday showed that the economy added about 230.7 thousand jobs in June, more than market expectations, which indicated that 172 thousand jobs were added, and compared to a loss of about 68 thousand jobs in May. On the other hand, the unemployment rate fell to 7.8%, compared to 8.2% in May.

Central Bank of Japan:

The Central Bank of Japan will announce its monetary policy by the end of this week, Friday, July 16 in the Asian period, in addition to the economic outlook report, which is issued every three months, where the Bank’s expectations for inflation and growth in Japan for the third quarter of this year will be announced.

The bank is not expected to change its monetary policy and current interest rates at 0.10% and maintain its policy of asset purchases after the bank decided at its meeting in mid-June that it will buy additional quantities of Japanese government bonds without setting an upper limit so that Japanese government bond yields remain for a period Ten years at zero levels, and the Bank also decided, by a majority of eight members, to extend the financing program period for a period of six months ending at the end of March 2022 to support companies to face the effects of the Corona virus.

Will the US Consumer Price Index affect market movements?

The inflation indicator represented in the US Consumer Price Index will be released tomorrow, Tuesday, in the American session, and with the US Federal Reserve reducing the importance of the inflation rises during this period and considering its rises temporary, the markets are not expected to be affected by inflation data unless the data is much stronger than expected.

Miscellaneous data will be released during the week:

Today, Monday, we will follow the statements of US Federal Reserve member Williams in the American period.

Tomorrow, Tuesday, the final reading of inflation data from Germany and France will be released in addition to inflation data in the United States of America in the American session.

Wednesday in the Asian session we will be watching the monetary policy statement and interest rates from the Reserve Bank of New Zealand. In the European period, inflation data will be released from Britain. In the American period, the Bank of Canada will announce its monetary policy, in addition to statements by US Federal Reserve Chairman Powell.

Thursday, we will monitor in the Asian period the labor market data (change in employment and unemployment rates) from Australia in addition to data from China represented in the gross domestic product for the second quarter of this year, unemployment rates and retail sales. In the European session, we will monitor labor market data from Britain. In the American session, we will monitor the unemployment benefits index and the Philadelphia manufacturing index from the United States of America.

Friday in the Asian session The Bank of Japan will announce its monetary policy and interest rates, while the final inflation reading from the Eurozone will be announced in the European session. In the US session, US retail sales, preliminary US consumer confidence and inflation expectations will be released from the University of Michigan.