Markets' attention next week will be focused on the Fed meeting due on Wednesday. Inflation in the US is on the rise despite expectations that it has topped out. In particular, June inflation in the US, which unexpectedly accelerated, kept the risk that the Fed underestimated the influence of persistent inflation factors and could hint at early tightening. Despite assurances from the Central Bank that increased inflation rates are temporary, some market participants believe that eventually the rise in prices will force the Central Bank to start tightening its policy earlier than planned. Therefore, there is still a chance that USD will remain on the growth track. FX moves this week showed that moderate buying pressure prevailed in USD:

Reports such as durable goods orders and the Conference Board Consumer Confidence Index will help clarify the contribution of strong consumer demand to US inflation in June. These data will appear on Tuesday.

On Thursday, a number of indicators for the United States will be released - weekly change in applications for unemployment benefits, GDP for 2Q, as well as data on US home sales. After the Fed meeting, market attention will shift to Jackson Hole conference where the Fed is likely to make major announcements.

On Friday, the data on GDP in Germany, as well as Eurozone CPI for July will help to clarify the pace of recovery of the EU economy after the pandemic. Canadian GDP for May is likely to have minimal impact on USDCAD.