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Bitcoin Debuts in El Salvador while Tapering is not Heavily Affected by Delta Variant

Last week ended without much of a jolt in the markets. US jobless claims fell to pre-pandemic levels, which means that companies are managing to retain workers. However, the Delta variant of COVID 19 continues to threaten economies worldwide.

The president of the European Central Bank, Christine Lagarde, stated in a speech that stimulus will not be withdrawn but reduced to a certain extent. In the coming months, instead of continuing to inject 80 billion euros into the European economy, the amount will be reduced to around 60-70 billion.

At the same time, the US Federal Reserve continues to debate whether to withdraw the fiscal stimulus it injects into the country’s economy every month. According to a report, Federal Reserve Bank of Philadelphia President Patrick Harker favored starting the stimulus reduction “sooner rather than later”. Additionally, by the end of September, some of the COVID 19 unemployment benefits will be phased out in many states.

Treasury yields fell 1.33% and traders will likely be waiting to see what direction the Fed is going to take. On Tuesday, the US CPI release will provide clues as to whether the higher prices are transitory. The dollar did not record any significant changes.

After S&P 500’s 0.8% loss on Friday, investors could be watching this week’s trading sessions closely. This morning, at the time of writing, during the Asian session the index was up 0.1%. while Japan’s market slumped, and the Chinese market fluctuated.

In the oil market, the West Texas Intermediate continues to hover around $70 a barrel. Prices are likely to be affected by the OPEC monthly reports due today, Monday, and the International Energy Agency report due to be released on Tuesday.

The GBP, the US dollar, and the Euro will be on traders’ radars due to upcoming data releases this week. On Wednesday the UK PPI and CPI and European industrial production data will be released. A day later, on Thursday, the US is scheduled to release its United States Retail Sales data for the month.

In the world of cryptocurrencies, Bitcoin became legal tender in El Salvador last week, and Ukraine is considering following suit. The cryptocurrency experienced a drop when it debuted in the Latin American country. Today, Monday, the largest crypto asset hit $44,873 and its counterparts Ethereum hit $3,283, recording a rise of 0.07%, at the time of writing.

Economic Events for the Week:


  • United States Federal Budget Balance
  • Organization of the Petroleum Exporting Countries (OPEC) Monthly Oil Market Report
  • Singapore Unemployment Rate


  • Reserve Bank of Australia (RBA) Governor Lowe Speech
  • United Kingdom Claimant Count Change
  • The United States Consumer Price Index (CPI) m/m
  • International Energy Agency (IEA) Monthly Oil Market Report


  • China Industrial Production y/y
  • United Kingdom Producer and Consumer Price Index (PPI & CPI) Output m/m
  • European Union Industrial Production m/m
  • Canada Core Consumer Price Index (CPI) m/m
  • The EIA United States Crude Oil Stocks Change


  • New Zealand Gross Domestic Product (GDP) q/q
  • Australia Employment Change
  • United States Retail Sales m/m


  • United Kingdom Retail Sales m/m
  • European Union Consumer Price Index (CPI) m/m
  • Deutsche Bundesbank Executive Board Member Maunderer Speech