Talking Points:
• This past week ended with an unexpected jolt of volatility spurred by a stock drop and leaked Fed report
• Next week's docket carries key event risk including the FOMC rate decision as well as the US and UK GDP
• Focus will be split between monetary policy and 'risk trend' themes
Find out what scheduled event risk can threaten your trades or trigger volatility with the DailyFX Economic Calendar.
We are in the midst of the Summer Lull where many expect the markets to hover patiently until the Fall. Yet, a liquidity dearth is not likely to hold back a committed selloff. This past week, modest selling pressure built to unexpected speed and breadth through the end of the week. Headlines of weak PMI figures was unlikely the motivation for a short-lived pang of fear. There is deeper uncertainty being harbored by market participants. Whether or not those concerns will finally come to the forefront or not will be weighed this coming week. The docket is laden with high-level event risk including monetary policy decisions and second quarter GDP readings. In particular, the Dollar may find itself in the cross-hairs between interest rate speculation - stirred by a leaked Fed report and next week's FOMC decision - and its underutilized role as a safe haven. We cover the top drivers in the week ahead in the weekend Trading Video.
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