This week, the currency markets are awaiting the issuance of many important economic data, on top of which are the interest decisions in New Zealand, the decisions of the Bank of Canada, and the US inflation data. These data will have a very strong impact on the movements of the currency markets, especially the movements of the US dollar.
Tuesday 11th July
British labor market data: The currency market will monitor the release of British labor market data on Tuesday at 6 am GMT, as the markets are waiting for such data, which gives an indication of the extent to which the British economy was affected by the repercussions of raising interest rates during the last period, and whether it succeeds in calming the situation In the labor market or not, therefore, this data will have a very strong impact on the movements of the Sterling against other currencies.
Wednesday 12th July
The decisions of the New Zealand Reserve: They are issued at the beginning of trading on Wednesday amid expectations that the New Zealand Reserve will keep the interest rate unchanged at 5.50% levels. Signals about monetary policy, which will reflect strongly on the movements of the New Zealand currency.
US inflation data: The currency markets will follow with great interest the issuance of the US inflation reading, which will have a strong impact on currencies, especially the US dollar, given that it will give a signal to the US Federal Reserve about its upcoming decision at the current July meeting, whether to fix interest or return again to raise interest rates, especially with expectations that it will continue. High US inflation, and if the data came higher than expected, that may prompt the Fed to raise interest rates again, while if the data came less than expected, this may support the bank's position to fix interest without change during this meeting.
Bank of Canada decisions: They will be issued on Thursday at 02:00 GMT, amid expectations that the bank will raise interest rates by about 25 basis points only, to raise the European interest to the level of 5.00%, but the currency markets will watch with great interest, the interest statement, and the statements of the Governor of the Bank of Canada, especially And it may give a clear indication about the economic situation in Canada, and the extent of the Bank of Canada's willingness to tighten monetary policy further during the upcoming bank meetings, and this will be strongly reflected in the movements of the Canadian dollar against other currencies.
Thursday, July 13:
The US Unemployment Claims Index: It will be released on Thursday at 12:30 pm GMT, and the currency markets always monitor the issuance of unemployment benefits because it gives a clear indication about the conditions in the US labor market, especially with the US labor market being affected recently by the US interest rate hike strongly during the last period. Expectations indicate that US unemployment benefits may rise by about 251 thousand applications. Therefore, the currency markets will monitor these data, especially since they will strongly influence the dollar's movements against the major currencies.
Friday, July 14:
Preliminary reading of consumer confidence issued by the University of Michigan: Preliminary reading of consumer confidence and inflation expectations for the University of Michigan: It is issued at exactly 2 pm GMT, and the markets always monitor this data because it gives an initial picture about consumer confidence and inflation expectations in America, and therefore, this data It always has clear repercussions on the movements of the US dollar against other currencies.
Also, you can follow the timing of the most important economic data in the currency markets throughout the week by following the economic calendar. You can also follow all events, economic news and analysis through market coverage.
