This week is full of many important economic events that will affect the movements of most major currencies, whether from central bank meetings or from important economic data. The Bank of Japan is opening the central bank meeting this week as the current monetary policy is expected to remain unchanged, but what will affect the JPY's movements tomorrow morning is the economic outlook accompanying the monetary policy statement, which will be a clearer picture of the Bank's economic outlook for the coming period.
The Federal Reserve is set to meet next Wednesday, as markets are poised to keep interest rates unchanged at 2.00% as the bank will prefer not to take any new decisions until it sees the impact of the recent lift on the economy before continuing monetary tightening.
On Thursday, markets priced UK interest rates up by 25 basis points to 0.75% after holding for long periods of time amid disappointing economic data, falling consumer spending and weak wage growth.
Moving to the important economic data to be released, however, consumer price growth in the euro zone is likely to fall by 2.0% in July, with Canada's monthly GDP rising 0.3% in May.
On the other hand, job growth in New Zealand is expected to slow in June to 0.4% as unemployment stabilizes at 4.4%. On the UK's key sectors in July, most forecasts point to a slowdown in manufacturing, construction and service growth.
Finally, US markets data are due to be released Friday, which will help determine the direction of the Federal Reserve for the coming period. Wage rates are expected to rise by 0.3%, with the sector adding 193K and unemployment falling to 3.9% in July.
