Busy week for stocks and Forex; catalyzers to change USD course

Investors are starting a busy week on Monday as the market will face three central banks’ interest rate decision, consumer price index reports in major economies and fireworks with the famous non-farm payrolls number on Friday.

The Bank of Japan will start the show on Tuesday as it is expected to maintain rates at -0.1% one more month, then, the Federal Reserve will hold its two-day meeting on Tuesday, and the FOMC will announce its decision on Wednesday. Expectations are for a rate of 2%, no changes.

On Thursday, the Bank of England will announce its rate decision and its monetary policy summary. The market is expecting a 25 points hike to 0.75%. Pay attention to the vote.

Unemployment rates will be released in Japan, Australia, Europe and the United States. While the situation is not good in Europe, the United States will monitor the nonfarm payrolls release to check how well the United States is doing. The market will also focus on the average hourly earnings.

On forex, the DXY is trading down for the second day after the pair was unable to break above the 95.00 level. The dollar index is testing now the 50-day moving average, which has been supporting the unit since its break on April 19.

Wall Street opened Monday with a mix of green and red numbers. Caterpillar is pushing the Dow Jones Industrial Average to the upside, while S&P 500 and the NASDAQ Composite are posting losses on the day.

Check the most critical event in the week.

Tuesday, July 21

  • China: NBS manufacturing PMI
  • New Zealand: ANZ activity outlook
  • Australia: HIA new home sales
  • Australia: Building permits
  • Japan: Bank of Japan interest rate decision
  • Germany: Retail sales
  • Germany: Unemployment rate
  • Eurozone: Gross domestic product
  • Eurozone: Unemployment rate
  • Eurozone: Consumer price index
  • United States: Personal consumption expenditure
  • United States: Personal income and spending
  • Canada: Gross domestic product
  • United States: S&P/Case-Shiller home price index
  • United States: Chicago PMI
  • New Zealand: Employment change and participation rate

Wednesday, August 1

  • China: Caixin manufacturing PMI
  • Germany: Markit manufacturing PMI
  • Eurozone: Markit manufacturing PMI
  • United Kingdom: Markit manufacturing PMI
  • United States: ADP employment change
  • Canada: Markit manufacturing PMI
  • United States: ISM manufacturing PMI
  • United States: Federal Reserve interest rate decision
  • Japan: Foreign bond investment

Thursday, August 2

  • New Zealand: Trade balance
  • Switzerland: SECO consumer climate
  • Switzerland: Retail sales
  • United Kingdom: PMI construction
  • United Kingdom: Bank of England interest rate decision
  • United States: Jobless claims
  • United States: Factory orders
  • Japan: Bank of Japan monetary policy meeting minutes

Friday, August 3

  • Australia: Retail sales
  • China: Caixin China services
  • Switzerland: Consumer price index
  • Germany: Consumer price index
  • Germany: Markit PMI services and composite
  • Eurozone: Markit PMI services and composite
  • United Kingdom: Markit PMI services
  • Eurozone: Retail sales
  • United States: Nonfarm payrolls
  • United States: Unemployment rate
  • United States: Trade balance
  • Canada: International merchandise trade
  • United States: Markit PMI services and composite
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