Central bank decisions and key economic data releases will dominate trading as investors assess monetary policy outlooks and inflation trends.
Major central banks will announce monetary policy decisions this week, with the Federal Reserve, Bank of England, and Bank of Japan taking center stage. The Fed is expected to hold rates steady at 3.50%–3.75%, though markets will scrutinize Chair Jerome Powell’s press conference for future guidance. The meeting will not include updated economic projections, leaving the policy statement as the primary focus.
Economic data will also draw attention, including U.S. GDP, PCE inflation, and durable goods orders, which are forecast to rebound 1.6% in June. The ADP Employment Change four-week average previously eased to 16.5K, while Eurozone growth and inflation figures will provide additional context. The U.S. Dollar Index (DXY) remains near 101.50 ahead of the busy calendar.
Traders will watch for shifts in tone from central banks, particularly amid signs of cooling inflation and slowing economic activity. The BoJ and BoE decisions could further influence global risk sentiment and currency movements.