Central Banks Take Center Stage with Interest Rate Decisions

The upcoming week will be dominated by key monetary policy decisions from major central banks. The US Federal Reserve (Fed), Bank of England (BoE) and Bank of Japan (BoJ) will take center stage, with their respective meetings scheduled for this week.

On Tuesday, the Fed's decision on interest rates is expected to be a non-event, with the target range remaining unchanged at 3.50%, 3.75%. The meeting will focus on the monetary policy statement and Fed Chair Kevin Warsh's press conference.

The US Dollar Index (DXY) trades near 101.50 ahead of a busy economic calendar. Durable Goods Orders are expected to rebound by 1.6% in June, while orders excluding transportation are forecast to rise 0.9%. Preliminary second-quarter GDP is expected to show annualized growth of 2.3%, up from 2.1%, and monthly Core PCE inflation is forecast to slow to 0.1% from 0.3%.

The Bank of England is also expected to maintain its policy rate at 3.75%, with the decision accompanied by the Meeting Minutes, Monetary Policy Summary, and quarterly Monetary Policy Report. BoE Governor Andrew Bailey will speak following the announcement.