NFP report is already behind us and market attention shifts to another key US report - CPI inflation for July. Will data help USD maintain gains from this week? We shall see on Wednesday. Elsewhere, CBRT will announce a monetary policy decision after another steep jump in inflation. Oil traders will be offered regular inventories data as well as a monthly report from OPEC. Be sure to watch EURUSD, USDTRY and OIL.WTI next week!
US dollar managed to regain some ground against major currencies this week. EURUSD dropped back to the 1.1800 area by the end of the week. There are no major reports from Europe next week but there is one big release from the United States - CPI inflation for July (Wednesday, 1:30 pm BST). Market expects headline gauge to drop from 5.4% to 4.9%. Apart from that, a number of Fed speakers may boost USD volatility throughout the week.
USDTRY climbed this week as the US dollar strengthened. The Central Bank of the Republic of Turkey will give lira a chance to regain ground when it announces its next policy decision on Thursday, 12:00 pm BST. Latest data from Turkey showed an acceleration in price growth from 17.5% to 18.95% YoY, signalling that CBRT is unlikely to reduce its very high rates (main rate at 19%). USDTRY jumped back above 8.50 this week and reached 2-week highs.
Oil has a tough week behind. Price dropped around 8% during the first three days of the week before recovering slightly. Unexpected build in US oil inventories reported by the Department of Energy put oil under pressure. Mounting Delta variant case count is another reason to worry for oil bulls. Among next week's key releases for oil traders, we can find API report on Tuesday, DOE report on Wednesday and monthly report from OPEC on Thursday.
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