5 Key Developments to Follow Next Week

5 key developments to follow next week have been announced. The speeches of the Fed officials will be important.

Here's what you need to know before starting the new week.

1.US Inflation Data

US CPI and PPI data will be shared on Wednesday and Thursday and will provide an insight into the current state of inflation, which is one of the important factors that the FED looks at when making monetary policy decisions, as well as the labor market. Optimistic employment numbers and high inflation data may combine to cause Fed officials to announce that they are planning to start reducing their bond purchases as soon as September. This may pave the way for a rate hike.

2.FED (US Federal Reserve) Speeches

Atlanta Fed Chairman Raphael Bostic and Rchmond Fed Chairman Thomas Barkin will speak on Monday, Chicago Fed Chairman Charles Evans will speak on Tuesday, and Kansas City Fed Chairman Esther George will speak on Wednesday. Bostic and Barkin are known to be close to mitigation thinking, so their explanations will be watched carefully.

3.The Period of Second-Quarter Reports Is About To End

Earnings reports will continue next week, but the number of companies reporting will decrease as the earnings season draws to a close. These names include AMC Entertainment (NYSE:AMC), SoftBank, Coinbase, Sysco (NYSE:SYY), Chesapeake Energy (NYSE:CHK), eBay (NASDAQ:EBAY), Wendy's, Lordstown Motors, Walt Disney (NYSE:DIS), and There is Airbnb.

4.Optimism Dominates Cryptocurrency Markets

Bitcoin hit two-month highs on Sunday. Although the market sentiment has recovered, its fragility has not passed. The digital currency hit $45,284, its highest level since mid-June. On Friday Paolo Ardoino, Bitfinex’s CTO (head of technology) said, “The optimism seems to have returned to the cryptocurrency markets.” Ardoino continued: “While Bitcoin is leading the way, Ethereum continues to gain after the network update. However, the turbulence we have seen in the crypto markets in recent weeks is unlikely to subside.”

5.UK GDP

On Thursday, the UK will share June GDP growth. The June numbers will be added to the published data to provide an official view of how the economy performed in the second quarter. With restrictions eased, economists expect the economy to rebound around 5% after shrinking at the start of the year. Also on Thursday, the eurozone will share June industrial production figures, and economists predict the recession will continue as supply chain issues weigh on. Source: Investing.com