Weekly Outlook 31st of July - 4th of August, 2017

2017-07-31

Weekly Outlook 31st July – 4thof August 2017

Maximusfx.com Weekly Outlook – The US dollar weakened lower against a list of major currency pairs on last Friday, upon concerns in US economic development advanced in the following quarter however there was slow growth on wage.

The Trade Department claimed on Friday that GDP moved up at quarterly bias rate of 2.6% by June that involved a significant progress throughout consumer spending. It was twice the growth rate of 1.2% progress shown in initial quarter.

However, other announcements on the reports indicated that wage development and inflation sustained passive after 1st quarter by the next 3 months.

The Employment Department illustrated reports 0.5% growth upon advancing 0.8% on salaries and wages.

The submissive inflation outlook has created severe dilemmas if the Federal Reserve will be stick to its next interest rate hike in 2017. The Federal Reserve claimed to pause interest rates on Wednesday as it expects to start decreasing its balance sheet relatively shortly.

On the other hand, political factors under Trump administration have also fed into recent dollar weakness.

The Euro currency pair raised up to its peak level against the dollar, with EUR/USD catching highs of 1.1775 on Thursday. The euro currency pair has strengthened 11% up to date for the year driving it the best accomplishment major currency against the dollar.

Accordingly, the euro has been progressing according to expectations of the ECB as it soon launches to gust down its stimulus program.

US dollar against Japanese Yen weakened at 110.68 with 0.5% drop off on last Friday.

Investors in the financial market turn their attention to a greater chance of a forthcoming illustration of Friday`s US employment announcements on the possible expectation of Fed policy by the end of the year.  

In the meantime, recent economic illustrations show that central banks meeting in the UK and Australia, euro zone preliminary data on inflation and following quarter progress will be on attention.

Here is the weekly outlook in the financial market by Maximusfx.com categorized as a list that could cause major volatility across currencies   

31st of July, Monday

China is to announce reports on production and service industry operations

New Zealand is to illustrate a report on business confidence

The Euro Zone is to publish a preliminary approximation of inflation during Germany is to indicate on retail sales

The UK is to demonstrate data on net lending

The US is to announce reports on pending home sales and business operations

1st of August, Tuesday

China is to indicate its Caixin producing PMI

Australia is to illustrate its interest rate and monetary policy decision

The euro area is to announce initial data on 2nd quarter growth

The UK is to announce data on manufacturing operations

The US is to announce data on personal spending

2nd of August, Wednesday

New Zealand is to illustrate its 3-month employment report

Australia is to report on building endorsements.

The UK is to announce data on construction activity

The US is to release the ADP non-farm payrolls report

3rd of August, Thursday

Australia is to announce on the trade balance

The UK is to announce data on service industry operations

The Bank of England is to announce its latest interest rate decision

The US is to release reports on jobless claims

4th of August, Friday

The RBA is to report on its latest monetary policy

Both Canada and US reports on Trade data and employment reports

 

Prepared by Maximusfx Senior Analyst – Z. Nuriddinov.