TRADERS LOOKS TO GLOBAL MANUFACTURING DATA AND THE FEDERAL RESERVE POLICY STATEMENT

ECONOMIC PERFROMANCES AND THE FED

The Federal Reserve interest rate decision and policy statement will be the main event for financial markets this week, the eurozone, United Kingdom and the United States will also be releasing second quarter gross domestic product figures and July manufacturing data.

As the week progresses we also have housing data and durable goods orders from the United States economy. Also of note, is the release of eurozone inflation data for the month of July, which is forecasted to decline from the previous month.

Monday 24th July, U.S Manufacturing PMI

As the new trading week begins we see the release of manufacturing PMI data from across the globe. Whilst European manufacturing activity accelerates towards decade highs, U.S manufacturing and services PMI are expected to come in only marginally higher than the previous month. Any surprises to the downside from the U.S may boost the EURUSD pair higher.

Tuesday 25th July, German IFO Survey

On Tuesday we see the release of the German IFO survey, which is comprised of three parts, the business climate index, the current assessment, and the business expectation index.

Financial markets pay close attention to the IFO business climate index, which rates the current German business climate and measures expectations for the next six months. It is a composite index based on a survey of manufacturers, builders, wholesalers and retailers.

Wednesday 26th July, U.S Federal Reserve Interest Rate Decision And Policy Statement

The Federal Reserve are expected to keep monetary policy unchanged at the July meeting, and maintain the current U.S interest rate at 1.25%.

Traders will be more focused on the Federal Open Market Committee policy statement, which may communicate to investors the timeframe for the Federal Reserves next intended rate hike, and the Committee's current thoughts on the U.S economy.

Thursday 27th July, U.S Durable Goods Orders

U.S Durable Goods Orders and Core Durable Goods orders are both expected to rise for the month of June, and may boost the value of the U.S dollar.

Core Durable Goods measures the change in the total value of new orders for long lasting manufactured goods, excluding transportation items, as aircraft orders are very volatile, the core number gives a better gauge of ordering trends.

Friday 28th July, U.S Q2 Gross Domestic Product

United States second quarter gross domestic product data is expected to far exceed the 1.4% growth figure set in the first fiscal quarter of 2017.

The second quarter headline gross domestic product number is forecasted to show that the U.S economy grew at 2.6% percent. A better than expected GDP figure may help boost the value of the U.S dollar.