US economic data and Fed meeting impact: A crucial week awaits financial markets.

Investors are awaiting a series of important economic data releases from the United States next week, which will have a significant impact on the movements of various traded financial assets, including commodities, metals, currencies, and stock market indices. Next week, specifically on Wednesday, we await the preliminary reading of US GDP data for the second quarter, after it showed a 0.5% contraction in the first quarter. 
 

US Economic Contraction Fears and Fed’s Interest Rate Decision

There are fears of a second consecutive quarter of contraction. On the same day, the US Federal Reserve will meet to determine the path of US interest rates, with expectations that they will remain unchanged at 4.5%. 
This contradicts the US Presidential Administration's policy of accelerating the pace of interest rate cuts, due to the harm and additional costs of servicing US debt. 
However, the Federal Reserve Chairman has a different view, given concerns that tariffs could lead to a renewed rise in prices after inflation continued to rise for the second consecutive month, reaching 2.7%. 
 

US Consumer Spending and Jobs Data Signal Market Resilience

On Thursday, we turn to consumer spending data, which is an important indicator of expected growth rates, given that consumer spending accounts for two-thirds of the US economy and reflects the resilience of consumption in the face of economic challenges. Looking ahead to Friday, we will have US jobs data, which is considered one of the main drivers of the markets, although it continues to show positive resilience despite fears of a slowdown. 
This is prompting the Federal Reserve to contradict the US political administration, stating that there are no factors prompting it to accelerate the pace of interest rate cuts. 
 

Conclusion:

Finally, everyone is anticipating the most prominent event of the year, which will take place on August 1, 2025. 
This is the date set for the implementation of high tariffs on any entity that does not conclude a suitable trade agreement with the United States, most notably the European Union countries. Trump has threatened tariffs of up to 30% if no agreement is reached, and he has also threatened to impose further tariffs if any entity adopts counter-tariffs as a precautionary measure. 
Given all this data, we expect significant price fluctuations and price movements within large price ranges, both upwards and downwards. This requires great attention from our investors when conducting any trading transaction and the need to pay attention to the issue of risk management to avoid any unacceptable losses. 
We must always remember that there is a significant difference in the interpretation of the news issued, which makes it difficult to build price expectations. We must also remember that prices do not necessarily move according to logic permanently and that prices may experience significant fluctuations before returning to stability.