Here are the week’s main market events that you should focus on.
This article is originally referred from Orbex Market Report.
Monetary Policy meeting by the U.S. Federal Reserve Bank
The U.S. Federal Reserve Bank will be holding its monetary policy meeting this week on Wednesday.
As widely expected, the central bank will be hiking interest rates by an additional 25 basis points.
This would bring the U.S. short-term fed funds rates to 2.0% – 2.25%.
Investors will be keen to see the forward guidance that will be released by the central bank along with the growth forecasts as well.
This will be the third-rate hike for this year. Currently, there are high expectations that the Fed will hike rates one more time in December.
U.S. final GDP figures
The U.S. final GDP figures will be coming out this week a day after the FOMC’s interest rate decision.
This being the final revision, the markets are expecting to see no major revisions.
The U.S. economic growth was confirmed at 4.2% during the second quarter.
Economic activity was seen accelerating strongly during the three months ending June 2018.
However, unless there are strong downside revisions, the markets will be most likely ignoring the data and looking to the GDP performance for the third quarter..
UK monthly GDP numbers
The UK’s Office for National Statistics (ONS) will be releasing its monthly GDP numbers this week.
The data will cover the month of August. While the GDP figures are unlikely to influence the markets much, the data could potentially set the expect actions for the GDP growth during the third quarter.
Monetary Policy meeting by RBNZ
The Reserve Bank of New Zealand will also be holding its monetary policy meeting this week.
No changes are expected from the RBNZ despite the recent uptick in the economy during the second quarter.
Therefore, the official cash rate will be unchanged at 1.75%.
The central bank’s decision to leave monetary policy unchanged comes due to forward-looking indicators suggesting a weak business outlook.
The business outlook potentially offsets the optimistic note brought by the second quarter GDP gains.
Inflation is also still too early to confirm if there are price pressures building up.
Original Source: Orbex Market Report