USD May Rise As GDP Data Boosts Rate Speculation
Dailyfx | Jul 30, 2015 08:41AM ET
- Euro Unlikely to Find Follow-Through in German CPI, Unemployment Data
- US Dollar May Rise as Upbeat 2Q GDP Report Amplifies Fed Rate Hike Bets
The preliminary set of July’s German CPI figures headlines the economic calendar in European trading hours. The benchmark year-on-year inflation rate is expected print at 0.3 percent, unchanged from the prior month. German Unemployment figures are likewise on tap, with the ranks of the jobless expected to shrink by a further five thousand.
On balance, neither release is likely to inspire meaningful follow-through from the euro considering their limited implications for near-term ECB monetary policy. Indeed, the central bank appears effectively on auto-pilot as it continues to implement its €60 billion/month QE effort through September 2016.
Later in the day, the spotlight will shift to second-quarter US GDP report. An increase of 2.5 percent is expected, marking a swift rebound following the 0.2 percent contraction in the first three months of the year. US economic data has increasingly outperformed relative to consensus forecasts recently, opening the door for an upside surprise. Such a result stands to reinforce bets on an on-coming Fed interest rate hike following yesterday’s hawkish shift in FOMC rhetoric, boosting the US dollar.
Original post
/h3
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.