News and economic event analysis disclaimer: This fundamental report is not advice or a recommendation to trade or invest, it is educational and general information only. Don’t blindly buy and sell the markets/products discussed in this article, do your own research and be aware of the risks and rewards.
USD Main Focus This Week:
- Economic Data Type: Minute of FOMC Meeting
- Server Time: Wednesday, 18.00
- Quick view: Investors will examine the minutes of the FOMC meeting in June which retains interest rates at 2.5% but drops statements to be patient instead signaling against a decrease in rate at a future meeting.
- Economic Data Type: United States Consumer Price Index date
- Time Server: Thursday, 12.30
- Quick view: For the past few months, lower data readings have been indicative of a drop in inflation rate. Data readings for this time are expected to decline from 0.1% to 0.0% while core readings are expected to increase from 0.1% to 0.2%.
- Economic Data Type: United States Producer Price Index data
- Server Time: Friday, 12.30
- Quick view: Pasran’s data reading will remain at 0.1% for June. But the drop in US import prices will also affect the reading of the data this time.
Quick View: Dovish
- The US central bank, the Federal Reserve, maintains its interest rate and 2.5% in a dovish tone.
- The next FOMC meeting was on 20 June 2019.
- Fed’s central bank’s economic data is the Consumer Price Index, Unemployment, and Gross Domestic Product.
- The FED said bottom inflation was weak despite that economic activity has risen at a strong pace and a strong labor market.
Main Economics Data of FED
- The US unemployment rate stood at 3.6% in May 2019, unchanged from last month and in line with the previous month.
- US GDP data recorded 3.1% reading in the first quarter of 2019, slightly lower than the initial reading of 3.2%.
- The annual inflation rate of US fell to 1.8% in May 2019 from a five-month high earlier and just below the 1.9% forecast, raising expectations that the Federal Reserve will begin cutting interest rates this year.
Expected Bias: USD Bearish
- US GDP data for the first quarter is low.
- Employment growth in May and the average income increase is less than expected.
- The consumer price index fell in May 2019 from a 5-month high.
- Federal Reserve’s central bank warned of possible interest rate cuts this year.