Review of economic calendar for this week

There has been a massive uncertainty going on all over the financial industry as no one is clear about the pending rate hike decision by the FED. Prior to the closing of the year 2016 FED chairperson Janet Yellen has proposed projected three rate hike for the year 2017.Despite the recent weakness in the green bucks, strength FED has managed to hike their interest two till July 2017.

Wednesday, 26th July

On Wednesday RBA (Reserve Bank of Australia) Governor Lowe will speak and most of the investors are cautiously waiting for his statement. Though the Aussie dollar is trading higher for against the green bucks for the second consecutive months, a dovish statement from RBA governor will push Aussie dollar lower against most of its major rivals. On the contrary, if the CPI q/q data release comes out positive then the long bullish rally of the AUDUSD pair will most likely to continue until the release of the U.S unemployment claim data.

The Sterling has been exhibiting strong positive performance from the very early part of this month and the leading analyst is expecting a further bullish rally in the cable as long as the 1.3000 support holds. If the Prelim GDP q/q data comes better than the forecasted data 0.3% then buyers will get fresh buying pressure which will ultimately push the cable higher in the global market.

Thursday, 27th July

All the leading investors are cautiously waiting on the sideline for the FOMC meeting minute scheduled on Thursday. Some of the leading currency analysts are expecting a dovish statement from the FED as the recent performance of the U.S economy is not up to the mark. Though it’s very unlikely that the FED will hike their interest rate on this FOMC meeting minute but a hawkish statement from the leading FED officials will push the U.S dollar index higher. Currently (11:30 PM GMT + 6) the US Dollar index is trading at 93.83 level and if this support level holds then U.S dollar will gain back its former glory. The U.S Unemployment Claims data is also scheduled on this Thursday and decent positive data release will fuel up the dollar bulls which will ultimately push the EURUSD pair from its five months high. On the contrary, the sterling is also paving its way north due to recent weakens of the green buck’s strength. A dovish statement from FED followed by weak negative news release in the U.S Unemployment Claims will help the cable to test high of 4th September 2016.

Friday, 28th July

On Friday we are expecting a flat trading session as there is no schedule of high impact news release. The market will most likely to react to Thursday data release on Friday. However, we have GDP m/m data release for the Canadian dollar and if the data comes better than the forecasted data 0.2% then we will a drastic fall in the USDCAD pair which is already trading at 9 months low due to the recent bullish surge in the price of oil.

Considering all the parameters it’s better to stay on the sideline and wait patiently till FOMC meeting minute so that we get a clear clue regarding the pending U.S interest rate hike decision.
See also:
Weekly market overview May 13 - 17.
Weekly market overview May 13 - 17.
Financial news