Daily Market Overview - July 22, 2026

This Wednesday in the financial markets brings a key release regarding the UK Consumer Price Index (CPI) at 6:00 (Warsaw time). Forecasts indicate a slight decrease in inflation from 2.8% to 2.7%, which could influence the Bank of England's monetary policy decisions. In the context of the inflation shocks we have observed in recent months, this data will be closely monitored by investors and analysts to assess the strength of the UK economy.

This week, the markets have already witnessed several significant publications. On Monday, we recorded lower-than-expected inflation data from Canada, which introduced additional uncertainty into the financial markets, raising concerns about global economic growth. Yesterday's data from the UK regarding the change in the number of unemployment benefit claims came as a surprise, as the number of claims was significantly lower than forecasts, which could suggest an improvement in the labor market. Today's CPI data will continue this theme and may indicate whether the UK economy is maintaining its growth momentum.

Traders should pay particular attention to the UK CPI data, which will be released at 6:00 (Warsaw time), as it may impact the volatility of the British pound. Results worse than expected could increase pressure on the Bank of England to take action to support the economy, while better results may alleviate these concerns. It is also important to consider the overall market sentiment, which remains in the fear zone, potentially leading to limited investor movements and greater caution in decision-making.

The current market sentiment remains in the fear zone, with the Fear & Greed index at 41/100. This is a stabilization compared to previous days; however, uncertainty still dominates among investors. Recent macroeconomic data, especially regarding inflation, has led to a more cautious approach to risk, which may result in a lower willingness to engage in riskier assets. It is worth noting that markets are awaiting the next FOMC meeting, which will take place on July 29, and current probabilities suggest that interest rates will be maintained at the unchanged level of 3.50-3.75%.