The upcoming week features central bank announcements in the UK and Australia. We’ll also get a look at key employment releases out of the US and Canada.

In the eurozone, GDP fell by 12.1% in Q2, after a decline of 3.8% beforehand. German consumer inflation fell by 0.5%, its second decline in three months. Canada’s GDP bounced back nicely in June, with a gain of 4.5%. This followed a dismal decline of 11.6% beforehand.

The Federal Reserve maintained the benchmark rate at zero and had a dovish market for the markets, as expected.  Policymakers reiterated their commitment to “act as appropriate to support the economy”, but did not announce any new policy measures.

The initial US GDP read for Q2 was dismal. The economy contracted by 32.9%, close to the estimate of 34.5%. The week ended with UoM Consumer Sentiment falling to 72.5, down sharply from 78.1 beforehand.

  1. Japan GDP: Sunday, 23:50. The Japanese economy is already in recession, and the upcoming GDP release is expected to be a third straight decline. The forecast for Q2 GDP stands at -0.7%.
  2. RBA Rate Decision: Tuesday, 4:30. The RBA is projected to maintain interest rates at 0.25%, where they have been pegged since March. Investors will be paying close attention to the tone of the rate statement. Recent statements from senior government officials have acknowledged that the economy is struggling, and a dovish message from the RBA could dampen enthusiasm for the Aussie.
  3. US ISM Manufacturing PMI: Monday, 14:00. The PMI jumped to 52.6 in June, up from 43.1 beforehand. The upswing is expected to continue, with an estimate of 53.6. A reading over the 50-level indicates expansion.
  4. US ISM Non-Manufacturing PMI: Wednesday, 14:00. The services sector showed strong expansion in June, with a reading of 57.1. The July forecast stands at a respectable 55.0.
  5. BoE Financial Stability Report: Thursday, 6:00. The Bank of England publishes its thorough report on financial stability twice a year. Apart from the details on banks, the BOE also makes available some economic assessments which are relevant to monetary policy.
  6. BoE Rate Decision: Thursday, 11:00. With the British economy still grappling with the devastating effect of Covid-19, the BoE is expected to maintain the official bank rate at 0.10%. Investors will be keeping a close eye on the quarterly monetary policy report, which will include inflation and economic growth forecasts.
  7. RBA Monetary Policy Statement: Friday, 1:30. The RBA releases a policy statement each quarter. A dovish statement could sour investors on the Aussie, which has sparkled against the greenback in recent months.
  8. Canada Employment Report: Friday, 12:30. The economy created almost a million jobs in June, with a reading of 952.9 thousand. This was up sharply from 289.6 thousand in May. Will we see another strong gain in the July release?
  9. US Employment Report: Friday, 12:30. Wage growth has dropped in the US for two straight months. Another decline is expected in July, with an estimate of -0.5%. The economy created 4.8 million jobs in June, but this is expected to slow to 1.5 million in July.
  • All times are EDT

Foreign exchange (forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher.
investment objectives, risk appetite and the trader’ level of experience should be carefully weighed before entering the forex market. There is always a possibility of losing some or all of your initial investment / deposit, so you should not invest money which is which it can’t afford to lose. The high risk that is involved with currency trading must be known to you. Please ask for advice from an independent financial advisor before entering this market.

Any comments made on Forex Crunch or on other sites that have received permission to republish the content originating on Forex Crunch reflect the opinions of the individual authors and do not necessarily represent the opinions of any of Forex Crunch’s authorized authors. Forex Crunch has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: Omissions and errors may occur.
Any news, analysis, opinion, price quote or any other information contained on Forex Crunch and permitted re-published content should be taken as general market commentary. This is by no means investment advice. Forex Crunch will not accept liability for any damage, loss, including without limitation to, any profit loss, which may either arise directly or indirectly from use of such information.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

AUD/USD battles 0.7700 amid covid, stimulus woes-led risk-aversion

AUD/USD holds the lower ground, testing the 0.7700 level amid broad risk-aversion that has triggered a bounce in the safe-haven US dollar. Uncertainty over the US stimulus, worries over new covid strain and lockdowns weigh on the risk appetite. 


GBP/USD pressured towards 1.3650 amid risk-off, ahead of UK jobs

GBP/USD remains depressed, heading towards 1.3650. The cable responds to the fresh risk-off mood after flashing a two-day losing streak. UK virus data suggests an improvement in covid conditions, Health Secretary Matt Hancock gives credits to activity restriction measures.


Gold: Bulls target daily extension

Gold is on the verge of an upside extension on a break of weekly resistance. XAU/USD is making progress with respect to the bullish market structure following a period of consolidation in recovery of the daily correction.

Gold news

Ripple is South Korea’s most popular cryptocurrency, but XRP price stays pressured

XRP/USD bounces off intraday low of 0.2647, stays below 21-day SMA for fifth day. As per the latest report from Messari, Bitcoin and Ripple are the most popular cryptocurrencies in South Korea.

Read more

US Dollar Index: A breach of 90.00 exposes 2021 lows at 89.20

The inability of USD-bulls to push further north of recent tops in the 91.00 region in past sessions prompted sellers to return to the markts and shifted the attention to the potential continuation of the downtrend.

US Dollar Index News

Forex Majors