The upcoming week is expected to be dominated by monetary policy decisions from the Federal Reserve (Fed), Bank of England (BoE), and Bank of Japan (BoJ), with significant attention also on US Gross Domestic Product (GDP), Personal Consumption Expenditures (PCE) inflation, Australian inflation, and preliminary Eurozone growth and inflation figures [1]. The US Dollar Index (DXY) is trading near 101.50 ahead of a busy US economic calendar, indicating heightened anticipation in currency markets [1].
Monday's Durable Goods Orders are forecast to rebound by 1.6% in June after a previous decline of 4.5%, while orders excluding transportation are expected to rise by 0.9% [1]. The US Dollar was the strongest against the Swiss Franc today, with a 0.21% gain, and showed mixed performance against other major currencies, including a 0.07% decline against the British Pound and a 0.02% decline against the Japanese Yen [1].
Tuesday's calendar features Consumer Confidence and the ADP Employment Change four-week average, which previously eased to 16.5K [1]. However, the main event for the US Dollar will be Wednesday's Federal Reserve decision. The Fed is widely expected to leave its target range unchanged at 3.50%–3.75%. This meeting will not include a Summary of Economic Projections, so market participants will focus on the monetary policy statement and Fed Chair Kevin Warsh's press conference for guidance [1]. The Fed's official calendar confirms that the July 28–29 gathering is not associated with updated economic projections [1].
Following the Fed decision, Thursday will see a major batch of US releases. Preliminary second-quarter GDP is expected to show annualized growth of 2.3%, up from 2.1%, while monthly Core PCE inflation is forecast to slow to 0.1% from 0.3% [1]. Initial Jobless Claims data is also anticipated, though specific figures are not provided [1].
CONCLUSION
Markets are bracing for a high-impact week driven by central bank decisions and key US economic data releases. The Fed's expected pause and lack of updated projections will shift focus to Chair Warsh's press conference for policy signals. Currency markets are already showing volatility, with the US Dollar gaining against the Swiss Franc and mixed moves against other majors.