This week, there are several key events and data releases that will impact the forex market. Here’s a rundown of what to expect:
On Tuesday, Switzerland will release the KOF economic barometer, and the U.S. will publish the CB consumer confidence and JOLTS job openings data.
Wednesday will bring inflation data for Australia and the Bank of Japan’s monetary policy announcement. Additionally, the eurozone will release its inflation data. In the U.S., we will see the ADP non-farm employment change, the employment cost index q/q, pending home sales m/m, and the FOMC monetary policy announcement.
On Thursday, the Bank of England will make its monetary policy announcement for the U.K., while in the U.S., the unemployment claims, ISM manufacturing PMI, and ISM manufacturing prices will be reported.
Finally, on Friday, Switzerland will release its inflation data, and the U.S. will report average hourly earnings m/m, non-farm employment change, and the unemployment rate.
In Australia, the consensus for CPI data is 3.8% y/y, which is lower than the previous rate in May. Inflation data remains high, and there are talks of a potential rate hike by the Reserve Bank of Australia if inflation exceeds expectations.
All eyes will be on the Bank of Japan meeting this week, with expectations that rates will remain unchanged. Analysts believe that the BoJ might revise their projections for inflation and economic growth.
In the eurozone, there is a consensus for a slight decline in headline CPI y/y and core inflation. The European Central Bank might not proceed with a rate cut unless other data supports it.
The Federal Reserve is expected to keep its monetary policy unchanged this week, with potential signals of future rate cuts. The first rate cut is expected in September.
In the U.K., the Bank of England might announce a 25bps rate cut at this week’s meeting, although some analysts suggest it could happen in September.
In the U.S., the ISM manufacturing PMI is expected to rise, along with an increase in ISM manufacturing prices. The labor market is a concern, with the unemployment rate rising and businesses laying off workers.
Overall, this week promises to be eventful in the forex market, with various central bank meetings and economic data releases shaping the trading landscape. Traders should stay informed and be prepared for potential market volatility.
