Daily Market Overview - July 18, 2026

If the financial markets could be described in one word last week, it would be 'uncertainty'. Investors held their breath, waiting for inflation data from the USA, which was expected to provide clues about future Fed moves. The surprising CPI and PPI results caught many off guard, but what did they really mean for the markets?

The beginning of the week did not bring significant events, which could suggest a temporary calm before the storm. However, investors remained vigilant, preparing for Tuesday's CPI inflation data from the USA. These figures were expected to be crucial for understanding whether the American economy would finally catch its breath in the fight against inflation.

Tuesday's data turned out to be a real rollercoaster. CPI m/m fell by 0.4%, which was significantly below forecasts, while CPI y/y stood at 3.5%. These numbers suggest that inflation is slowing down faster than expected, which could mean that the Fed will be less inclined to raise interest rates. However, the market reacted cautiously, as reflected in the decline of the fear and greed index to 37/100.

Wednesday brought data on producer price inflation. PPI m/m fell by 0.3%, while Core PPI m/m was 0.2%, which was also below expectations. This data further confirms that inflationary pressure is decreasing, which may give the Fed more flexibility at the upcoming FOMC meeting. On Thursday, UK GDP m/m increased by 0.1%, slightly above forecasts, providing a small relief to the economy.

In summary, the past week was full of surprises and uncertainty. Inflation results suggest that the US economy may be on the path to stabilization, but investor caution is still evident. The upcoming FOMC meeting may provide more guidance regarding future monetary policy. In the meantime, it's worth noting that cryptocurrencies operate non-stop, and their volatility on weekends can be interesting for bold investors.

Market sentiment this week has been dominated by inflation data from the USA. Surprisingly low CPI and PPI readings have sparked speculation about the possibility of a slowdown in the pace of interest rate hikes by the Fed. The labor market and price stabilization have been at the forefront of investors' attention, who are anxiously monitoring every move of the Federal Reserve.

The Fear and Greed Index has fallen to a level of 37/100, suggesting that investors are more cautious and uncertain about the future. Despite the decline in inflation, many questions remain unanswered, and the risk of global geopolitical tensions, along with influences from other markets, only adds fuel to the fire of uncertainty.

It is worth noting that despite the current fear, the markets have not experienced dramatic declines. This may indicate that investors still believe in the strength of the U.S. economy in the long term, although they remain cautious in the short term. The upcoming FOMC meeting will be crucial for shaping future sentiment.