The United States will publish a headline and core inflation rate on July 13, at 15:30 MT time.
American consumer spending tacks on
In July, American consumer spending jumped firmly, thus hinting at sturdy economic surge in the third quarter. Meanwhile, a measure of underlying inflation reached the Fed’s 2% objective for the third time in 2018.
On Thursday, other data disclosed a soar in fresh applications for unemployment benefits the previous week, although the underlying trend kept pointing to a firm labor market.
However, there’re worries that the current presidential administration's protectionist trade stance that has provoked an escalating trade conflict with China as well as tit-for-tat import duties with other trading partners, such as Canada, Mexico and the EU could impact the American economy.
The Commerce Department told that consumer spending, accounting for more than two-thirds of American economic activity, jumped by 0.4% the previous month having rallied by the same margin in June. In July, households shelled out more at restaurants as well as accommodation.
Additionally, there was a leap in spending on prescription medication. The previous month's ascend in consumer spending turned out to be in line with analysts’ hopes.
In July, prices proceeded with their gradual upward trend. Without energy and food, the personal consumption expenditures price index managed to jump by 0.2% having soared by 0.1% in June.
It lifted the year-on-year jump in the core PCE price index to up to 2% from June’s reading of 1.9%. Eventually, the core PCE index turns out to be the Fed's primary inflation gauge. In March, it hit the Fed’s 2% inflation objective for the first time since April 2012.
Published the previous week the minutes of the Fed's July 31-Aug. 1 gathering disclosed that some policymakers were concerned over the fact a prolonged period in which the US economy acted beyond potential could provoke inflationary pressures.
As a matter of fact, wages managed to surge by 0.4%.
Federal Open Market Committee, a committee within the Federal Reserve System (the Fed), will reveal a detailed record of the most recent meeting on July 7 at 21:00 MT.
The United States will post the indicators of employment on July 2, at 15:30 MT time.
The Reserve Bank of Australia (RBA) will hold a meeting and announce changes to the monetary policy on August 3, at 07:30 MT time (GMT+3).
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.