2016–07–27 Market watch by Parit Sripakdeevong, Market Analyst, MultiBank Exchange Group.
July 27th 8:30AM GMT: The United Kingdom Office for National Statistics will report on GDP Annual Growth Rate. This figure is reported on a quarterly basis, and tomorrow data will be that of Q2 2016. The Annual Growth Rate is a year on year statistic, so today’s figure will measure how much the economy has grown since Q2 2015. The market expects growth rate to be the same as Q1 at 2%
July 27th 12:30PM GMT: The U.S. Census Bureau will report on Durable Goods Order. This figure is reported on a monthly basis, and tomorrow data will be that of June 2016. This statistic measure month on month changes in new order placed on goods that have an average life of at least three years. The market expects orders to decrease 1.1% in June from May. This come after a 2.2% decrease in the previous month. It should be noted that this statistic is considered volatile due to the inclusion of transportation and defense sector. The investor should also keep an eye out for the same statistic with both sectors excluded.
July 27th 6:00PM GMT: The FOMC (Federal Open Market Committee) will meet to decide on the United States Fed Funds Rate. The FOMC meets every six weeks, with the previous meeting occurring on June 15th. The FOMC last increased its rate on December 2015 from 0.25% to 0.5% and have kept it stable since. The market expects the FOMC to keep rate stable at 0.5% in line with its last press statement expressing concern over Brexit. However, recent U.S. economic indicators have beaten expectations, and most investors now believe that the FOMC will raise rate in a future meeting this year.
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