Not a lot of top-tier data scheduled in the U.S. this week. Can this week’s catalysts inspire volatility for the dollar?
Let’s look at some of them:
After last week’s FOMC-NFP combo, Uncle Sam is taking a chill pill with only lower-tier releases on tap this week.
ISM’s non-manufacturing PMI today at 3:00 pm GMT is expected to improve from 55.1 to 55.5 in July. It will probably get less attention, though, after last Friday’s NFP report has somewhat reflected Uncle Sam’s service sector conditions for the month.
The PPI reports scheduled on Friday at 1:30 pm GMT could get attention especially if there are no other economic themes at play.
Expectations are mixed, with the headline PPI seen at 0.2% after June’s 0.1% uptick while the core figure could print a 0.2% gain after last month’s 0.3% increase.
FOMC member speeches
The Fed’s policy statement might be over, but that doesn’t mean FOMC-related volatility is!
Over the next couple of days voting members like James Bullard (Aug 6, 5:00 pm GMT) and Charles Evans (Aug 7, 1:30 pm GMT) are scheduled to take center stage.
Recall that a lack of hints of further rate cuts weighed on market risk sentiment last week. Sentiment improved, however, when members eventually hinted that it will “act as appropriate to sustain the expansion” and probably ease further in the foreseeable future.
Keep your eyes glued to the tube for hints of another rate cut before the year ends!
U.S.-China trade updates
In case you’ve been busy telling your friends to watch “Fast & Furious Presents: Hobbs & Shaw,” you should know that Donald Trump had recently unleashed fresh tariffs on more Chinese products.
China has vowed to “take necessary countermeasures” after the tariff hike announcement and has asked state-owned companies to suspend imports of U.S. agricultural products earlier today. Yikes!
For now, all eyes are on how Trump will react to China’s currency also dropping below the closely watched 7 per dollar mark in today’s Asian session trading.
Will the Donald turn the spotlight to a potential currency war and hint at measures to cap the dollar’s gains? Or will he double down and announce even more crippling measures against China’s imports?
Missed last week’s price action? Read USD’s price recap for July 29 – August 2!