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Analysts at Wells Fargo, points out that markets participants will keep an eye next week, on events related to US monetary policy as Chairman Powell delivers its semi-annual testimony and the Fed releases the minutes from its latest meeting.  

Key Quotes:  

“Chair Powell delivers his semi-annual testimony before the House Financial Services Committee on Wednesday and the Senate Banking Committee on Thursday. Additionally, the minutes to the June FOMC meeting are published on Wednesday.”

“Keeping rates unchanged in June, the Fed clearly shifted tact and indicated they are prepared to ease monetary policy at upcoming meetings due to increased uncertainty over the outlook.”

“We suspect Chair Powell will reiterate those same concerns to Congress, thereby keeping the door open to a rate cut at the July FOMC meeting. In regards to the meeting minutes, interest will be high for any additional details on the balance sheet that could suggest an earlier end to tapering or further discussions on the equilibrium size and composition.”