The week ahead promises to be a busy one for investors with lots of U.S. economic data coming into focus, including a 2 day Federal Reserve meeting that wraps up on Wednesday that isn’t expected to produce any new interest rate hike.
The current probability for an interest rate hike during the Fed’s July policy meeting currently stands at just 2.5 percent, based on the most recent results from CME Group’s Fed Watch Tool published on Friday.
Besides the interest rate decision on Wednesday from the U.S. Federal Reserve, U.S. housing data will be reported early in the week with existing home sales for June on Monday, the FHFA Housing Price Index and the S&P Case Shiller Home Price Index on Tuesday, and June new home sales reported on Wednesday.
U.S. Consumer confidence for July is due on Tuesday, followed by Durable orders for June on Thursday, and 2nd quarter 2017 U.S. GDP (advanced) on Friday.
Based on consensus estimates from briefing.com, U.S. Q2 GDP is expected to rise 2.8 percent after expanding 1.4 percent in the first quarter of 2017.
The euro strengthened to a 2 yr. high against the dollar on Friday after the European Central Bank (ECB) decided to keep interest rates unchanged a day earlier on Thursday while ECB President Mario Draghi said that the ECB’s Governing Council will discuss policy changes later in the autumn.
Draghi confirmed that the ECB’s net asset purchases, at the current monthly pace of €60 billion, are intended to run until the end of December 2017, or beyond, if necessary, and until inflation adjusts consistent with their aim of below, but close to, 2 percent over the medium term.
Written and Edited By: