With the last full week of July ahead, there is significantly more event risk on the docket than the third week in July. Now, as the markets have begun to digest the results of the new bailout of Greece, price action will largely be dictated by key events on the docket, including American and British growth figures, Australian and German consumer price indexes, and a rate decision from the most southern antipodean nation. Still, the markets will continue to listen to jabbering between Democrats and Republicans, as the debt ceiling debacle has still yet to find resolution ahead of the ‘hard’ August 2 deadline.

United Kingdom Gross Domestic Product (YoY) (2Q A): July 26 – 08:30 GMT

The British economy has experienced growth of at least 1.5 percentin each of the past four quarters, on a year-over-year basis, going back to the second quarter of 2010. Surveys indicate that the GDP growth figure released on July 26 will come in at 0.8 percent, well below last quarter’s 1.6 percent pace, on a yearly-basis. Growth forecasts have been revised downwards as the economy has failed to pick up momentum in recent weeks and months, as most recently noted by the Bank of England minutes, released this past week.

Contributing to the downturn has been the persistent Euro-zone debt crisis, which has curtailed investment overseas and demand for British goods. Inflation continues to be stubbornly high at 4.5 percent, more than double the inflation target rate as set by the Bank of England. Although a decline in output should deter further inflation, the priority remains to accelerate economic growth, which is why the central bank has held rates at 0.50 percent for twenty-nice consecutive months. Join a DailyFX analyst for live coverage of event!

• United States Durable Goods Orders (JUN): July 27 – 12:30 GMT

U.S. Durable Goods Orders are expected to have risen only 0.3 percent after increasing a promising 2.1 percent in May, already revised up from the 1.9 percent initial reading. The increase is still welcomed following a 2.7 percent drop in orders in April. The recent upswing in the closely watched economic indicator is rooted mainly in easing disruptions to factory production in the United States, as supply chain disruptions as a result of the aftermath of the Japanese natural disasters and ensuing earthquake weakened demand. In the fragile U.S. economy, manufacturing has been one of the key areas of strength since the recession abated.

A weaker domestic currency has boosted exports and encouraged manufacturers to continue to make long-term investments. The durable goods orders report is a leading indicator of economic health, and will thus be closely watched to gauge manufacturers’ sentiment and investment activity as the debt ceiling debate looms in the U.S. Join a DailyFX analyst for live coverage of event!

Reserve Bank of New Zealand Rate Decision (JUL 28): July 27 – 21:00 GMT

At its last meeting on June 8, the Reserve Bank of New Zealand decided to maintain its key benchmark interest rate at 2.50 percent, on the outlook that the economy is steadily improving following the earthquakes over the past few months. The central bank has determined that the most southern antipodean nation is still in need of stimulus to promote further strengthening. It is widely expected that the key rate will be kept at 2.50 percent at the next monetary policy meeting on July 28, with the Credit Suisse Overnight Index Swaps showing a mere 6.0 percent chance of a 25.0-basis point rate hike. Still, despite such weak expectations, the number of basis points priced into the Kiwi over the next 12-months, 94.0, has boosted the New Zealand Dollar since mid-March.

In spite of such a strong domestic currency, recent data releases indicate that the economy is undergoing robust growth and inflation has risen faster than expected. GDP growth figures released on July 13 came in at 1.4 percent, blowing past a forecast of 0.5 percent growth, while recent inflationary data showed inflation increasing to 5.3 percent, topping expectations of 5.1 percent, on a year-over-year basis. These two important economic indicators will play a major role in determining future the central bank’s cash rate decisions. If the recent growth continues, there is a high probability that there will be a rate hike in September to contain inflationary pressures. Join a DailyFX analyst for live coverage of event!

German Consumer Price Index (YoY) (JUL P): July 28 – 04:00 GMT

The German consumer price index has remained steady for the last six months and no change is expected in this figure at the next release next Thursday. According to a Bloomberg News survey, the initial forecast calls for a print of 2.3 percent on a year-over-year basis, matching the number of the previous month. This number is slightly higher than the European Central Bank’s target inflation of “below but close to 2 percent,” but the recent rate hikes enacted by the central bank are expected to help suppress further jumps in inflationary pressures: changes in interest rates take anywhere from two- to six-months to be felt by an economy.

Higher energy prices have been the primary driver keeping inflation above the 2.0 percent mark but “lower food and seasonal food prices can be in part held responsible for the benign pan-German reading.” Since Germany is the Euro-zone’s strongest and largest economy, this reading is closely watched by the European Central Bank as a determinant of their monetary policy decisions.

United States Gross Domestic Product (Annualized) (2Q A): July 29 – 12:30 GMT

The U.S. economy is expected to have experienced very slow economic growth in the second quarter of 2011. The GDP data that will be released on July 29 is an indication that output is increasing at a decreasing rate, albeit at a decreasing rate. Forecasts call for a 1.7 percent growth in output versus a 1.9 percent growth experienced in the first quarter, according to a Bloomberg News survey. Two significant factors contributing to the slow recovery include high food and energy prices and supply chain disruptions following the Japan earthquake.

The ongoing debt ceiling debate has reduced consumer confidence as investors concerns grow about the possibility of a U.S. default. The lowered confidence levels have translated into reduced spending impacting the output produced by the world’s largest economy. At the most recent Federal Reserve monetary policy meeting, the FOMC revised GDP and unemployment forecasts downwards from their April projections. The change in growth forecasts for 2011 and 2012 have been revised from 3.3 percent to 2.9 percent and from 4.2 percent to 3.7 percent, respectively.Join a DailyFX analyst for live coverage of event!

See the DailyFX Calendar for a full list, timetable, and consensus forecasts for upcoming economic indicators.

Written by Christopher Vecchio, Currency Analyst

To contact the author of this report, please send inquiries to: cvecchio@dailyfx.com

Follow Christopher Vecchio on Twitter: @CVecchioFX