Today Forex markets are awaiting GDP data which will show that the US economy grew by an impressive 2.8% in the second quarter compared to the first quarter. If this happens, it would be double the 1.4% growth rate of the first quarter. Moreover, it will reinforce expectations of a sharp interest rate cut by the Fed in September. Last week's jobless claims are also expected to fall short of 232K today
On Friday, currency speculators will get more chances to trade with additional volatility. In the US, the July PCE will be published. This is the report the Fed prefers to use when tracking inflation, as it excludes more volatile items such as food and energy. Also on Friday, traders will be watching for preliminary data on headline inflation in the Eurozone - CPI for August
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