As the world’s largest economy is expected to expand at a slower pace in the second-quarter of 2010, the advanced GDP report could spur further weakness in the U.S. dollar and lead the central bank to hold a loose policy stance throughout the second-half of the year as the outlook for future growth falters.

As bank lending in the U.K. is expected to weaken in June, the data is likely to reinforce a weakened outlook for future growth, which could spur a reversal in the British Pound as investors weigh the prospects for a sustainable recovery.

As the Reserve Bank of New Zealand is widely expected to increase borrowing costs for the second consecutive month in July, the NZD/USD may continue to trend higher over the week as investors speculate the central bank to normalize policy throughout the second-half of the year.