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Federal Reserve Chairman Jerome Powell was optimistic about the progress of the US economy
The testimony that Federal Reserve Chairman Jerome Powell will present next week ahead of Congress will shape future expectations future interest rate increases in the US, while badysts debate whether one or two other adjustments will apply this year.
Powell was optimistic about the progress of the US economy, highlighting the role of tax cuts. The rise in the United States contrasts with the slowdown in activity and monetary normalization in other major economies.
"The latest set of inflation data confirms that the Fed will stay well ahead of other central banks." rate, said Piotr Matys, currency strategist at Rabobank. This outlook had an impact on the markets, mainly through a rise in the dollar.
The divergence between the United States and other countries would also continue to show up in second-quarter earnings announcements. As US companies continue to post double-digit increases, European companies would post a more moderate pace.
Bank of America, Netflix and GE are some of the big American companies planning to announce their profits. In Europe, the list includes companies such as Swedish Ericsson, Swiss Novartis and Anglo-Dutch Unilever
In terms of data, the evolution of industrial production and retail sales in June will be known in the United States . Reuters survey estimates indicate that both series would reflect a healthy expansion rate.
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