Fed Decision, GDP Data, and BoJ Rate Announcement to Shape Market Narratives

The Federal Reserve's interest rate decision and press conference on July 29 will be closely watched by market participants, as it may influence expectations for potential rate cuts later this year.

Analysts expect the Fed to hold rates steady at the current level, but the tone of Chair Jerome Powell's remarks during the press conference will be critical in assessing the central bank's confidence in inflation moving towards its 2% target.

The US Bureau of Economic Analysis will release the advance estimate of second-quarter gross domestic product on July 30, which may provide insight into economic growth. The core personal consumption expenditures data for June will also be released, offering a gauge of underlying price pressures.