USD July

USD 8th-12th July Fundamental Report

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.

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