This should be a much quieter week for the Forex markets, due to much less being scheduled for this week than there was last week. There will be no central bank actions or statements at all. We are also getting close now to the beginning of July, the start of a period where markets tend to range with low volatility.
The focus this week will be very much on the USD and the EUR, with hardly anything else going on concerning the other currencies. There may be an important announcement regarding the Greek crisis on Monday. Failing that, the USD will dominate the headlines, with uncertainty over the direction of that currency zooming in on the Fed’s intentions to raise its Federal Funds Rate, and this topic will be addressed publicly on Tuesday. There will also be key U.S. economic data released every other day this week, with the exception of Friday.
U.S. Dollar
On Monday Existing Home Sales data will be released. Tuesday will see both the release of Durable Goods Orders and a speech by a member of the FOMC that will be closely watched as it is expected to address the question of the likely timing of the next rise in the Federal Funds Rate: this will be closely watched by the market. On Wednesday we will get Final GDP data, followed on Thursday by Unemployment Claims data.
Euro
The Euro might seize the center stage this week, with a Euro Summit and Eurogroup meetings taking place all day Monday, focusing primarily on finding a solution to the Greek crisis. This could lead to some volatility for the Euro as announcements and/or leaks appear. Tuesday will see the release of both French and German Flash Manufacturing PMI. On Wednesday there will be a release of German IFO Business Climate data.
New Zealand Dollar
Friday will see a release of Trade Balance data.
British Pound
On Friday shortly before the London close, the Governor of the Bank of England will be participating in a minor panel discussion. This probably will not be very important for the Pound, however.