The upcoming week, covering the days from July 13 to July 17, 2026, promises to be an extremely interesting period for financial markets, full of key events and potentially significant political decisions. Investors around the world will closely monitor the latest macroeconomic data and comments from leading central bank representatives, which may influence market direction and investment decisions in the near future.
We start this week with significant attention focused on the United States, where on Tuesday at 12:30 (Warsaw time) inflation data, namely CPI and Core CPI, will be released. Forecasts indicate a decrease in both annual and monthly inflation, which may suggest that inflationary pressure in the world's largest economy is beginning to ease. Core CPI y/y, which is often considered a more reliable indicator of core inflation, is expected to be 2.8%, representing a slight decrease compared to the previous month. Meanwhile, the overall CPI y/y is projected at 3.8%, which also suggests a decline from the previous reading of 4.2%. For the monthly CPI, forecasts indicate a drop to -0.1%, which could signal to the market that inflation is under control.
On the same day, investors will also be drawn to the speech of Fed Chair Kevin Warsh. His testimony may provide investors with insights regarding the Federal Reserve's future actions in the context of monetary policy. Current probabilities regarding interest rate levels indicate a high likelihood of maintaining the current range of 3.50-3.75%, but a rate hike cannot be ruled out, especially if macroeconomic data suggests the need for further tightening of policy.
Meanwhile, on the other side of the Atlantic, on Tuesday, markets will also be listening for the speech of Bank of England Governor Andrew Bailey, who may shed light on the future actions of the British central bank, particularly in light of the changing economic situation in the UK and the impact of inflation on monetary policy.
Wednesday will bring more important data from the US, this time regarding PPI, the producer price index. Forecasts suggest stagnation on a monthly basis, which may confirm the trend of price stabilization. On the same day, the Bank of Canada will announce its interest rate decision, which is expected to remain unchanged at 2.25%. At the same time, a report on monetary policy will be published, which may provide additional insights into the bank's future actions. Given the recent positive labor market data from Canada, investors will be looking for signals on whether the Bank of Canada will opt for a more restrictive approach in the future.
Thursday will start with the publication of GDP data from the UK. Forecasts assume a growth of 0.1% on a monthly basis, which represents an improvement compared to the previous decline of 0.1%. This is a sign that the British economy may begin to stabilize, and a potential recovery could positively influence the country's economic outlook.
Against the backdrop of these events, sentiment in financial markets remains neutral, as indicated by the current Fear & Greed Index at 49/100. Nevertheless, there is a noticeable increase in optimism among investors, which may suggest that the market is ready for riskier moves if the upcoming data and statements from central bank leaders support a positive economic scenario.
In summary, the upcoming week is rich in key events that could significantly impact global financial markets. Investors should prepare for potential volatility and closely monitor both macroeconomic data and the statements of leading financial decision-makers, which may define the direction of the markets in the coming weeks.