The release of the FOMC Minutes will take centre stage next week as investors search for fresh clues on how Federal Reserve officials view the outlook for inflation and interest rates following June's policy meeting.
Markets will be looking for signs of whether policymakers remain concerned about persistent inflation and a resilient US economy. Any indication that officials still favour keeping interest rates elevated for longer could provide renewed support for the US dollar and Treasury yields.
Beyond the Fed Minutes, traders will also monitor several second-tier releases, including US services activity and the housing market, for additional insight into the strength of the world's largest economy.
Our focus this week will be on Alpari's USDInd which may be preparing for a larger breakout move.
Fed Minutes and global growth signals in focus
Markets will focus on the publication of the Federal Reserve's June meeting minutes for fresh insight into the central bank's policy outlook. Investors will also monitor inflation data from China, Canada's labour market and US economic indicators for additional clues on global growth.
Monday, July 6th: US ISM Services PMI
The services PMI will provide an update on activity in the largest part of the US economy. A stronger-than-expected reading could reinforce expectations that economic growth remains resilient.
Wednesday, July 8th: FOMC Minutes
The minutes from the Federal Reserve's latest meeting may offer deeper insight into policymakers' views on inflation, growth and the future path of interest rates. Any hawkish signals could support the US dollar.
Thursday, July 9th: China CPI
China's inflation report will be closely watched for signs of improving domestic demand and broader economic momentum, with potential implications for global risk sentiment.
Thursday, July 9th: US Existing Home Sales
Housing market data could provide additional insight into how elevated borrowing costs are affecting the US economy and consumer demand.
Friday, July 10th: Canada Unemployment Rate
Canada's labour market report may influence expectations around future Bank of Canada policy decisions and drive volatility in the Canadian dollar.
