What will happen? US consumer confidence will be announced at 5:00 MT (GMT+3) on Tuesday, July 27…
Evergreen buck goes down as traders wait for Fed verdict
On Tuesday, the evergreen buck slumped due to the fact that market participants waited for news from the key US bank’s latest policy gathering.
The measures utilized to gauge the purchasing potential of the key American currency against a number of its main rivals the USD index went down by 0.14% ending up with 96.41 following an overnight maximum of 96.63.
With the Federal Reserve generally anticipated to have rates increased by up to 25 basis points for the fourth time in 2018 on Wednesday, market participants will be closely watching for any fresh remarks from Fed officials on probable policy changes next year.
Fed representatives, including Fed Chair Jerome Powell, have already told that interest rates are approaching neutral. What’s more, they’ve become more cautious about the major bank’s tightening policy against the backdrop of worries of decelerating global surge.
By the way, American leader has several times criticized the US main financial institution for lifting interest rates. On Monday, Trump told that it was incredible that the Federal Reserve is currently planning another interest rate lift.
Versus the safe-haven Japanese yen the evergreen buck declined. As a matter of fact, the currency pair USD/JPY went down by 0.3% being worth 112.51.
Meanwhile, the UK currency managed to leap. The currency pair GBP/USD tacked on by up to 0.35% demonstrating a reading of 1.2661. As for the common currency, it was backed by the lower greenback. The currency pair EUR/USD surged by 0.2% trading at 1.1372.
In addition to this, the currency pair NZD/USD managed to leap by approximately 0.8% coming up with an outcome of 0.6861. The currency pair AUD/USD jumped by about 0.3% trading at 0.7197. Additionally, the Canadian dollar dived. The currency pair USD/CAD soared by 0.08% hitting 1.3417.
The OPEC meeting and the US Nonfarm Payrolls rocked the market last week. The market is torn between optimism about the global economic recovery and concerns about the new coronavirus strains.
All eyes are turning to the Federal Reserve and the US dollar. How to trade XAU/USD, EUR/USD, and GBP/USD?
This week Apple, Microsoft, Google, Facebook, Pfizer, and other large US companies will deliver earnings reports…
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…