Last week was heavily focused on the US with Indices hitting almost daily all-time highs in a stringent euphoric mood, with markets turning from War fears back to “TACO” trades, bullish on the global economic outlook.
One thing to note is that asset managers are increasingly more bullish on stocks, and the market mood may be a bit too euphoric, which may pull positioning too far on one side and lead to higher volatility in case of bad news.
In terms of data, markets saw ECB rates consolidating around 2% with some policymakers, the latest with Banque de France’s Villeroy commenting on the potential deflationary impact of a stronger .
More directly market-moving however, was the streak of positive data releases for the United States, particularly as it comes to employment with at +37K vs expectations and a beat on .
One thing to be wary about in the solidity of that data point is the major rise in Government Jobs, providing a boost to the data without generating direct contribution to .
Only Private Employment missed, and and the miss was not a small one: -33K vs 97K expected.
This point of data tends to be less market-moving than NFP; however, Jerome Powell had previously mentioned private employment as a reason for last year’s one-off 50 Bps cut from the .
The week ahead will shift the market’s focus back to central banks and geopolitics, as participants brace for a series of global catalysts that could reintroduce uncertainty after several weeks of sustained positive sentiment.
Asia-Pacific Markets
Reserve Bank of Australia Rate Decision
The Reserve Bank of Australia, after cutting its cash rate by 25 bps to 3.85 % in May (its first trim since January), is widely expected to shave another 25 bps to around 3.60 % at its upcoming meeting as inflation cools but global headwinds linger.
The decision will be released in the July 7th to 8th overnight session at 00:30 A.M. (8/07).
Reserve Bank of New Zealand Rate Decision
The Reserve Bank of New Zealand—having lowered its OCR by 25 bps to 3.25 % in May—is forecast to hold rates at 3.25 % on Tuesday July 8th at 10:00 PM, though markets see further easing into early 2026 amid a still‑negative output gap.
Central Bank Cut/Hike Market Pricing
Central Bank Cut/Hike market pricing – Source: Forexlive.com
BRICS Meeting in Rio De Janeiro
Brazil, Russia, India, China, and South Africa will convene this week in Rio de Janeiro, July 6 and 7 to discuss current geopolitical issues, including US tariffs, recent Middle East developments and other habitual subjects (expansion, climate action, commodity demand, development goals, …).
Economic Data from Europe, UK and North America
Don’t forget the few bouts of moving data with Ivey PMI on Tuesday at 10:00 A.M. and Canadian Employment on Friday at 8:30 ET.
In European markets, economic releases will mostly focus on the Eurozone and some ECB Speakers – the rest will be lower-tier data.
MarketPulse Economic Calendar
US Dollar Performance Versus Other Forex Major Counterparts
Source: TradingView
The has seen a decent rebound in the latter part of this week but still finishes down against most of its major counterparts – The CAD has however held particularly strong against the USD in the end of the week, something to check in the upcoming week.
and the have also had a consistent decent performance in the beginning of the week particularly but have started to show signs of potential tops – This will depend heavily on an upcoming potential US Dollar rebound, scenario explored in our latest analysis.
Weekly Asset Performance
Source: TradingView
has bulls have seen some newfound strength but takes the crown for this week’s cross-asset performance.
The US Dollar and have on the other hand been the laggers of the week, again. Let’s see if the Dollar regains some ground after the positive NFP report from Thursday.
Safe Trades in the upcoming week!