Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Forex - Weekly Outlook: Jul 29 - Aug 2

ForexJul 28, 2019 06:57AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

Investing.com - This week investors will be focusing their attention on Wednesday’s Federal Reserve decision, where policymakers are widely expected to deliver their first rate cut in more than a decade amid concerns over slowing growth and subdued inflation.

Friday’s U.S. job report for July will also be closely watched to confirm whether a rate move was necessary as investors try to gauge the monetary policy outlook for the rest of the year.

Investors will also be awaiting developments on the trade front as talks between the U.S. and China resume. Central bank meetings in the U.K. and Japan will also help drive market sentiment in the coming week.

The U.S. dollar hit two-month highs on Friday as better-than-forecast U.S. growth data didn’t alter expectations for an impending Fed rate cut amid risk from trade conflicts and softening global demand.

Data showed U.S. GDP grew at a 2.1% annualized rate in the second quarter, weaker than the 3.1% pace in the first quarter but stronger than the 1.8% forecast by economists.

“You continue to see this theme that the U.S. is growing well, better than most G7 economies, consistent with dollar strength that we’re seeing on the back of this,” said Erik Nelson, currency strategist at Wells Fargo Securities in New York.

“I don’t think it changes all that much for the Fed next week. We still expect a 25 basis-point cut at the meeting,” he added.

In late U.S. trading, the U.S. dollar index was up 0.2% at 97.72, after earlier hitting its highest level since late May at 97.83. It gained 0.9% on the week following a rise of about 0.4% the week before.

The greenback received an additional boost after White House adviser Larry Kudlow said the U.S. has ruled out intervention in currency markets to counter other nations from weakening their own currencies to help their exporters.

In other currencies, the euro was down 0.16% at 1.1125, recovering from a two-month low of 1.1112 after the European Central Bank decision on Thursday. For the week, the single currency fell 0.8%.

After the ECB session, President Mario Draghi indicated the bank was prepared to cut rates at its next meeting, in September, and consider other options for easing.

Sterling shed 0.6% to 1.2377, after European Commission President Jean-Claude Juncker told Britain’s new prime minister, Boris Johnson, that an agreement reached by his predecessor Theresa May was the best and the only Brexit deal.

Ahead of the coming week, Investing.com has compiled a list of significant events likely to affect the markets.

Tuesday, July 30

Japan Bank of Japan rate decision

Germany Prelim CPI

U.S. Core PCE Price Index

U.S. Personal Spending

U.S. CB Consumer Confidence

U.S. Pending Home Sales

Wednesday, July 31

China Manufacturing and Non-Manufacturing PMIs

Euro zone Premin flash GDP

Euro zone CPI flash estimate

U.S. ADP) nonfarm payrolls

U.S. Chicago PMI

U.S. Federal Reserve rate decision

Thursday, August 1

China Caixin manufacturing PMI

U.K. Bank of England rate decision

U.S. Initial jobless claims

U.S. ISM manufacturing PMI

Friday, August 2

U.S. Trade balance

U.S. Nonfarm Payrolls

--Reuters contributed to this report

Forex - Weekly Outlook: Jul 29 - Aug 2
 

Related Articles

Dollar flat after more evidence of rising inflation
Dollar flat after more evidence of rising inflation By Reuters - May 13, 2021 5

By Kate Duguid and Karen Brettell NEW YORK (Reuters) - The dollar held steady near week highs on Thursday after the U.S. Labor Department reported higher producer prices in April,...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Sanjeev Hutheram
Sanjeev Hutheram Jul 28, 2019 9:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I think that Powell will act strategically against EU and upcoming BOJ decision.A drastic cut does not guarantee success for the US.If there is any easing from the Fed they will want to see certain return on the decision therefore very selective as to where the cheap money goes.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email