What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
Greenback extends 4-week winning marathon
On Monday, the evergreen buck rallied versus a basket of key counterparts having posted four consecutive weeks of revenues because financial markets braced for the first rate lift of 2018 from the US major bank.
With fresh Fed Chair Jerome Powell's first monetary policy gathering, bond markets have already prepared for one rate lift and plus two more a bit later in 2018. Market participants are going to closely watch whether the new Fed Chair confounds hopes for future rate lifts or not.
Positioning information on some bank models, including BNP Paribas demonstrate that this week market participants have already got down to unwinding their short positions on the US currency in the run-up to the policy, although futures data drops a hint at a bit more cautious attitude to the major American currency.
Risk aversion turned to be evident in financial markets with equities in the European Union starting on a weaker note as well as the volatility index inching up because on Monday the finance ministers of the 20 big world powers attend a major G20 summit.
Versus a group of six key currencies the US dollar index rallied 0.1% being worth 90.345.
The US dollar index reached a two-week maximum on Friday hitting 90.38 after data disclosed a February surge in American industrial production.
However, market participants warned against putting much value on the dollar bounce. It’s because the evergreen buck was supposed to stay weak. It definitely echoes the pattern of 2017 by dropping in the aftermath of the rate lifts.
Meanwhile, the common currency headed south 0.1% versus the evergreen buck showing a result of $1.22755.
The British pound stood still sticking to $1.3941.
Additionally, the Hong Kong dollar went down to a fresh 33-year minimum versus the US currency.
What will happen? US consumer confidence will be announced at 5:00 MT (GMT+3) on Tuesday, July 27…
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.
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.