Currency traders this is a huge week for the US Dollar. So beware! This week is full of economic news releases happening almost everyday of the week ending with the jobs report also known as the NFP Report on Friday. If you are a news traders, you should be ready to pull in big pips this week. Just make sure you enter in the right direction when you open the trade. Federal Reserve rate hike decision expected in September will be based on the comparison of the economic data released this week.
As the Federal Reserve prepares the world for tighter monetary policy via interest-rate hikes, it continues to reiterate that tightening will depend on the incoming economic data, not some fixed schedule.
Last week, we were hit with disappointing reports on wages, home prices, and consumer confidence. And while we learned GDP was growing again, revisions to earlier GDP reports were not great.
“Not only was economic growth slightly slower over the past few years but the composition of growth has shifted slightly in a less favorable way in regard to near-term growth,” Wells Fargo’s John Silvia noted. “Inventory building slowed in the second quarter but not nearly as much as had been expected. Slower inventory building will be a larger drag on growth during the second half of the year. Business fixed investment also looks to add less to growth during coming quarters, particularly given the renewed slide in oil prices. The economy will be leaning more heavily on the consumer going forward and even on that front we saw some warning signs.”