- Summary:
- This article presents the economic news calendar for the week, with a focus on the key fundamentals that will dominate the FX market.
The new week is here and it is time to look at the key fundamentals for this week. This week’s economic news calendar is relatively thin, but will be largely dominated by a lot of politics and central bank action/statements. Here is some insight as to what fundamentals to look out for, starting from Tuesday July 23.
Economic News for Tuesday July 23
The Bank of England (BoE) will make public the minutes of its last monetary policy meeting. Also, the winner of the British Conservative Party leadership contest will be announced, with Brexit proponent Boris Johnson widely expected to win. These fundamentals will define the week for the British Pound, as well as events from the Straits of Hormuz where British Ships were seized by Iranian forces.
Economic News for Wednesday July 24
The Eurozone will see the release of the French and German Flash Services PMI reports, as well as the German Flash Manufacturing PMI. Surprises to the upside could be quite bullish for the Euro, as the fundamentals for the German economy and its manufacturing sector have not been very positive lately.
Economic News for Thursday July 25
This is the big day of the week, which kicks off with a speech by the Reserve Bank of Australia (RBA) Governor Philip Lowe. This speech is titled “Inflation Targeting and Economic Welfare” and will be presented at the Anika Foundation Luncheon, in Sydney, Australia. He is expected to comment on the focus of the RBA in terms of monetary policy in the months ahead.
Later that day, the European Central Bank (ECB) will announce its rate decision on Thursday. The market is expecting rates to be kept flat at 0.00%. More important will be the comments by Mario Draghi, where he is expected to comment on whether the ECB will pursue a path of further economic stimulus.
The US Core Durable Goods orders will round off the economic news for the day. Markets are expecting a reduction of 0.2% from the previous number of 0.4%.
Economic News for Friday July 26
The only news for Friday that is worth trading is the US Advance quarterly GDP result. The US economy is expected to have slowed from 3.1% to 1.8%, as a result of the US-China trade war. This will strengthen the Fed’s case for rate cuts. Watch out for a reading that is worse than expected. This could really set off a round of selling on the US Dollar and boost the chances of a more aggressive 50bp cut on July 31.
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