In the fast-paced and interconnected world of forex trading, staying informed about the latest news and data releases is of paramount importance. The forex market is highly sensitive to global events, economic indicators, and policy decisions made by central banks and governments. News plays a crucial role in shaping market sentiment, influencing currency movements, and determining trading strategies.
According to Daily Forex, in the third week of July 2023, here are some important news and data releases you can consider highlighting in your weekly trading!
Market Sentiment Turns Bearish
The current market sentiment has shifted towards a more bearish outlook, despite recent data showing a decrease in inflation in Canada, the UK, and New Zealand. The declines in inflation were more significant than expected in the UK and Canada, while New Zealand’s inflation drop was weaker than anticipated.
However, as the week progressed, the market mood dampened due to weaker-than-expected US retail sales data. This triggered a sell-off of risky assets, leading to a stronger US Dollar.
The combination of factors contributing to this bearish turn emphasizes the complexities of the global market. Traders and investors are closely monitoring economic data to make well-informed decisions in the ever-changing financial landscape.
Expectations for Rate Hikes by the Fed and ECB
As the new week begins, all eyes are on the policy meetings of two major central banks – the US Federal Reserve and the European Central Bank (ECB). Both institutions are expected to announce a 0.25% rate hike during their meetings. Additionally, the Bank of Japan will also be holding its own policy meeting later in the week.
Given the anticipation of these rate hikes, market sentiment is likely to remain cautious and risk-off, mirroring the prevailing mood at the end of the previous week.
Last Week’s Data Releases
- Chinese GDP and Industrial Production: Both indicators showed an increase, but the GDP data fell short of expectations, signaling potential economic challenges in China.
- US Empire State Manufacturing Index: The index surpassed expectations, reflecting positive conditions in the manufacturing sector in the US.
- Reserve Bank of Australia Monetary Policy Meeting Minutes: The minutes of the Reserve Bank of Australia’s Monetary Policy Meeting were seen as leaning towards a hawkish stance. They acknowledged a close decision not to raise interest rates, suggesting the possibility of a future shift in the central bank’s monetary policy.
- US Unemployment Claims: The data came in almost exactly as expected, reflecting a stable labor market in the US.
- Australian Unemployment Rate: The unemployment rate remained unchanged at 3.5%, contrary to expectations of a rise to 3.6%, indicating a resilient job market in Australia.
The news presented on Prime Codex is solely those of the analysts quoted. They do not represent the opinions of Prime Codex on whether to buy, sell or hold specific pairs. Traders are advised to conduct their independent research before making an investment decision.