Rate hikes projected for US and ECB

Economic calendar summary

Interest rate decisions across the globe headline this week's economic data releases. Traders could see price action throughout trading sessions as the US, Euro Area, and Japan decide on short term interest rates. Both the US and the ECB are expected to raise rates 25 basis points, while the Bank of Japan will most likely stay at -0.1%.

Australia leads off the week with quarterly inflation data, and the US wraps up with core PCE index data on Friday.

Check out the entire economic calendar

Inflation Rate - Australia

Time: 9:30pm ET Tuesday, July 25th

Previous: 7.0%

Expected: 6.3%

Australia's quarterly inflation data expects to lower from 7% in the first quarter of the year. The Reserve Bank of Australia will look to this reading for guidance ahead of their interest rate decision next week.

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Interest Rate Decision - US

Time: 2:00pm ET Wednesday, July 26th

Previous: 5.25%

Expected: 5.5%

The Fed is forecasted to hike rates an additional 25 bps on Wednesday following a hold last meeting. This comes after inflation data was lower than expected, but still far from the Fed's 2% goal.

Interest Rate Decision - ECB

Time: 8:15am ET Thursday, July 27th

Previous: 4.0%

Expected: 4.25%

The European Central Bank is also expected to raise interest rates by 25 basis points. Traders will likely look to EUR/USD following both interest rate decisions for possible price action.

Interest Rate Decision - Japan

Time: 11:00pm ET Thursday, July 27th

Previous: -0.1%

Expected: -0.1%

Japan remains the only major economy to hold short term interest rates steady and negative, with no raises expected. This hold would increase the spread in interest rates against USD and EUR - if the week plays out as forecasted.

Core PCE Price Index - US

Time: 8:30am ET Friday, July 28th

Previous: 0.3%

Expected: 0.2%

Continued easing in core personal consumption expenditure prices is expected this month. Traders will have a clearer picture of US dollar strength heading into the weekend with this reading combined with the rate decision earlier in the week.

How to trade economic events

1. Open an account to get started, or practice on a demo account
2. Choose your forex trading platform
3. Open, monitor, and close positions on forex pairs

Trading economic events with forex requires an account with a forex provider like IG. Many traders watch major forex pairs like EUR/USD and USD/JPY for potential opportunities based on economic events such as inflation releases or interest rate decisions. Economic events can produce more volatility for forex pairs, which can mean greater potential profits and losses as risks can increase at these times.

You can help develop your forex trading strategies using resources like IG’s Trading Academy. Once your strategy is developed, you can follow the above steps to opening an account and getting started trading forex.

Your profit or loss is calculated according to your full position size. Leverage will magnify both your profits and losses. It’s important to manage your risks carefully as losses can exceed your deposit. Ensure you understand the risks and benefits associated with trading leveraged products before you start trading with them. Trade using money you’re comfortable losing.