Traders are looking at 'one of the most eventful weeks in a while' — BBH
(Kitco News) This week is likely to be one of the “most eventful weeks we’ve seen in a while,” which means a lot of volatility, according to BBH Global Currency Strategy. “Not only do three major central banks meet, but we also get important June and July data from the US, the first Q2 GDP reading from China, an OPEC+ meeting, and an EU summit,” BBH currency strategists write. “This comes as markets are grappling with still-rising virus numbers in the U.S. and resurgent numbers in many other countries that call into question the durability of the economic recovery. With so many events impacting virtually all assets, we expect a volatile week ahead for the markets.” The U.S. June retail report will likely he the highlight of North American markets on Thursday. The Bank of Canada and Bank of Japan will be making their interest rate announcements on Wednesday, followed by the European Central Bank on Thursday. On top of that, OPEC+ is meeting Wednesday to discuss whether output cuts will be extended. “We look for continued swings in market sentiment this week as markets grapple with the conflicting drivers of improved economic data and rising virus numbers,” the strategists note.