Traders await important US macroeconomic data releases

US focus

During the upcoming trading week, traders and investors will focus on the release of key macroeconomic data from the United States economy, and a key interest rate decisions from the FOMC. The United States economy releases important Inflation, Consumption, Jobs, and Growth figures this week. Market participants will also be highly anticipating the latest interest rate decision and a monetary policy statement from the Federal Open Market Committee.

Other highlights on the economic docket this week include Inflation, Economic Confidence, and Building data from the Australian economy, and key Gross Domestic Product, CPI Inflation, and Unemployment figures from the eurozone economy.

Monday 27th July, US Durable Goods Orders

The Durable Goods Orders is a government report, released by the US Census Bureau which measures consumer spending on long-term purchases, products that are expected to last more than three years. Durable goods are generally sensitive to economic fluctuations because durable products usually involve large investments. Consumers becoming sceptical about economic conditions causes sales of durable goods to be among the first to be affected.

  • The USDCAD pair is only bullish while trading above the 1.3500 level, further upside towards the 1.3600 and 1.3660 resistance levels seems possible.
  • If the USDCAD pair trades below the 1.3500 level, sellers are likely to test towards the 1.3350 and 1.3300 support levels.

Tuesday 28th July , US Consumer Confidence

The Consumer Confidence is released by the Conference Board measures the level of consumer confidence in economic activity. The Conference Board index has the largest pooling sample of any US measure of consumer confidence. The Conference Board Consumer Confidence Index is a barometer of the health of the U.S. economy from the perspective of the consumer.

  • The USDJPY pair is only bullish while trading above the 106.90 level, key resistance is found at the 107.30 and 108.00 levels.
  • If the USDJPY pair trades below the 106.90 level, sellers may test towards the 105.50 and 105.00 levels.

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Wednesday 29th July, US FOMC rate decision

The Federal Open Market Committee meets eight times per year to decide on United States monetary policy and where to set the nations interest rate. Rate changes impact interest rates for US consumer loans, bonds, mortgages and the US dollar exchange rate. The decision of the FOMC policy statement is usually very important, maybe more important than the actual interest rate move made by the central bank, due to it being highly anticipated by market participants. The policy statement includes hints for the future and contains the central banks collective outlook on the economy.

  • The USDCHF pair is only bearish while trading below the 0.9540 level, further losses towards 0.9180 and 0.9130 levels remain possible.
  • If the USDCHF pair trades above the 0.9540 level, buyers are likely to test the 0.9600 and 0.9650 resistance levels.

Thursday 30th July, EUR EU Unemployment Rate

The EU Unemployment Rate is released by the Eurostat and represents the number of unemployed workers divided by the total civilian labor force. It is seen as aa leading indicator for the overall health and expansion of the European jobs market. Generally speaking, a decrease of the figure is seen as positive for the euro currency, while an increase is seen as negative for the euro.

  • The EURGBP pair is bullish while trading above the 0.9000 level, key resistance is found at the 0.9110 and 0.9170 levels.
  • If the EURGBP pair moves below the 0.9000 level, sellers are likely to test towards the 0.8950 and 0.8810 support levels.

Friday 31st July, US Core Price Index

The Federal Reserve utilizes a measure of inflation resulting from the PCE as their primary gauge of inflation. A stable Personal Spending figure reflects that consumers are purchasing goods and services, thus spurring output growth and fueling the economy. The report is greatly valued mainly due to its capability of forecasting inflationary pressures. An overall increase of prices may be derived from an excess take in of these high levels of production and consumption.

  • The EURUSD pair is bullish while trading above the 1.1470 level, key resistance is found at the 1.1680 and 1.1800 levels.
  • If the EURUSD pair moves below the 1.1470 level, sellers are likely to test towards the 1.1410 and 1.1330 support levels.

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