1. Q2 2014 Advance GDP
Price action should start to get interesting by Wednesday when the advance GDP report for the second quarter of 2014 is released. Due at 6:00 pm GMT, the report is anticipated to print at 3.1%.
Analysts expect a rebound from the weakness in economic growth that we saw in the first three months of the year because the weather has significantly improved and should not have hampered economic activity anymore in April to June.
2. FOMC Statement
Policymakers are then scheduled to take center stage with the Federal Open Market Committee (FOMC) statement. At 6:00 pm GMT on Wednesday, July 30, no changes to interest rates are expected to be announced.
The Federal Reserve has been notably optimistic about labor market conditions in its past few announcements. And so, market participants will be looking for traces of the central bank’s positivity in this week’s upcoming statement too. The lack of which may cause the dollar to give up ground against some of its counterparts.
3. NFP report for July
The jobs report for July is arguably the biggest market-mover for the dollar this week. On Friday, August 1, at 12:30 pm GMT, markets expect to see another month of strong job growth with the forecast up at 230,000 to follow the 288,000 reading that we saw for June.
Federal Reserve Chairman Janet Yellen as well as other key Fed policymakers have been vocal about how important the health of the labor market is in their future monetary policy decisions. And so, the release could once again spark volatility in the markets, like it usually does every month.