The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!
Euro zone surge speeds down again in March
Euro zone businesses concluded the first quarter of this year with probably the slowest surge for more than a year. The given outcome turns to be weaker than anticipated because new business appeared to take another hit from a shockingly strong common currency, according a poll.
In February, the euro zone's economic boom had already ceased because soaring prices put pressure, and a Reuters survey earlier this month told that surge had reached its climax, demonstrating a concern over the European Central Bank because it drifts away from an extremely loose monetary policy.
IHS Markit's flash composite PMI for the euro zone, considered to be a good indicator of economic health, headed south to 55.3 in March, which is far below all estimates in a Reuters survey that had forecast a more moderate dive to 56.7 versus February's final outcome of 57.1.
The survey compiler IHS Markit told that the data – notwithstanding severe weather also influencing March - pointed to firm first-quarter GDP surge of about 0.7%, which is a bit faster than the 0.6% forecast in a Reuters survey.
Since the beginning of 2018 the common currency has gained over 2% versus the evergreen buck, and it’s supposed to proceed with rising, thus making the bloc's services and goods less affordable for foreign buyers.
Since December export surge has more than halved from quite elevated levels. It definitely coincides with the strengthening of the common currency. Market experts guess that some of that currency effect might take its toll.
Aside from that it affected the EU’s dominant service industry. As a matter of fact, its PMI edged down to a five-month minimum of 55.0 versus 56.2, and also below all estimates in a Reuters survey that had foreseen an outcome of 56.0.
What will happen? The US Q2 Gross Domestic Product will be announced at 15:30 MT time (GMT+3) on Thursday, July 29…
Today the Fed will make a policy statement at 21:00 GMT+3. This event will affect all the currency pairs with the USD and thus almost the all Forex market!
The Reserve Bank of Australia (RBA) will hold a meeting and announce changes to the monetary policy on August 3, at 07:30 MT time (GMT+3).
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.