Weekly Impact News - Forex Market
Previous Weekly News
1. Fed Interest Rate Decision
The Federal Reserve kept rates unchanged, signaling a cautious approach to inflation. Markets responded with volatility across USD pairs, especially USD/JPY. Bond yields remained steady post-announcement. Fed Chair Powell hinted at possible future hikes. Investors focused on inflation forecasts for further cues. Dollar Index initially dipped before recovering.
2. US Non-Farm Payrolls Report
The NFP data beat expectations with 250k jobs added. Unemployment rate slightly declined to 3.5%. Wage growth remained stable at 4.1%. Strong labor market boosted USD and hurt gold prices. Market priced in a hawkish Fed stance post-data. Risk sentiment improved temporarily.
3. ECB Rate Hike by 25bps
The European Central Bank raised rates by 25 basis points. Euro initially strengthened but reversed due to dovish comments. ECB expressed concern about slowing growth in eurozone. Inflation remains above target but moderating. Markets anticipate only one more hike this year. Bond markets showed a mild rally post-decision.
Next Week News
4. Upcoming US CPI Inflation Report
The next CPI release is expected to show a slight decline in inflation. Analysts expect headline CPI at 3.1% YoY. Core inflation may remain sticky around 4.0%. Fed will closely monitor for clues on rate direction. A surprise reading could trigger USD volatility. Gold and equity markets are likely to react strongly.
5. Bank of England Policy Meeting
Markets await BOE's next move on interest rates. Inflation in the UK has remained elevated. A 25bps hike is expected but not fully priced in. GBP pairs may see strong directional moves. Any dovish tilt could pressure GBP/USD. Traders will monitor forward guidance closely.
6. China Q2 GDP Growth Data
China’s GDP data is set to be released next week. Q2 growth may miss expectations amid weak exports. Analysts forecast 5.5% YoY GDP growth. Commodities and AUD/CNH are likely to react. A slowdown may lead to stimulus hopes. Global risk sentiment could shift based on results.