Your Weekly Fundamental View (July 24–28)

Need to Know

The FOMC statement and the Federal Funds Rate decision are the focal point of this week. The Federal Reserve will present a detailed record of the FOMC's most recent meeting with deep insights into the financial conditions. According to the forecast, the Federal Funds Rate should remain unchanged (1.25%). Other important events to keep an eye on this week are:

Coming Up

AUD CPI out on Tuesday, 25 July

This vital report that focuses on the Australian CPI could move the AUD currency basket. The CPI is the change in the price of goods and services purchased by consumers.

Why should you care? Traders could benefit from short-term volatility in AUD crosses once the report has been released.

GBP Preliminary GDP Due on Wednesday, 26 July

The UK is mainly a service economy, and the GDP report represents the change in the inflation-adjusted value of all goods and services produced within the frames of the economy.

Why should you care? This is an important gauge of the economy's health.

FOMC Statement and Federal Funds Rate Decision on Wednesday, 26 July

Source: Federal Funds Rate Decision, HighCharts.com

The FOMC statement discusses the US economic outlook and the outcome of the FOMC members vote on their interest rates. The rate decision is usually priced into the market, and anything unexpected should lead to heavy volatility in USD crosses.

Why should you care? Traders usually decipher the statement based on the general sentiment (hawkish, neutral, or dovish) as USD crosses tend to move a lot after the statement disclosure.

US Unemployment Claims Released on Thursday, 27 July

These claims are the earliest national economic data, representing the number of individuals who filed for insurance for the first time during the past week. If the actual result comes weaker than the forecast, it could be deemed good for the currency.

Why should you care? The number of the unemployed is an essential signal in terms of overall economic health and could hint at future monetary policy steps.

CAD GDP Released on Thursday, 27 July

The GDP represents the change in the inflation-adjusted value of all goods and services produced by the economy.

Why should you care? It measures Canada's economy health, and traders might trade the USD/CAD currency pair after the news has been released.

CNY Manufacturing PMI out on Monday, 28 July

The data represents the level of the diffusion index based on the surveyed purchasing managers in the manufacturing industry.

Why should you care? It's a leading indicator of economic health. The data should move Chinese equities and Forex Asia-Pacific crosses.

EUR Business Confidence Due on Friday, 28 July

The data represents the level of a composite index based on surveyed manufacturers, builders, wholesalers, and retailers.

Why should you care? EUR crosses might move following the news release.