FXStreet (Mumbai) – Analysts at TD Securities note the main three drivers in terms of economic events scheduled for the upcoming week which may spur some volatility across the FX board.
Key Events:
“Q2 GDP (Tue 28 July): Our nowcasts for UK Q2 GDP have barely budged from 0.6% q/q since April and the release of Q1 GDP at 0.4%.”
“Overall, this suggests the Q1 deceleration was indeed temporary and Q2 is back to trend—if not slightly above—what should be trend going forward.”
“FOMC (Wed 29 July): We believe the Fed may well use the July FOMC statement to set up the September hike, by nudging the market further with tweaks to the language.”
“Overall, the risk within this FOMC meeting is that it sets up to be a more hawkish outcome than most expect.”
“US Q2 GDP (Thu 30 July): The US economic recovery is back on track. After essentially stalling in Q1 amid a trifecta of headwinds, we expect growth momentum to rebound meaningfully in Q2.”
“The economy should boast a relatively decent 2.5% Q/Q advance, as the recovery moves beyond the soft patch earlier this year. The risks to this forecast are tilted to the upside.”
(Market News Provided by FXstreet)