What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
Greenback keeps to a two-week maximum
On Monday, the evergreen buck kept to the maximum for two weeks against the basket of other key currencies amid forecasts of a further increase in the interest rate in 2018. Reducing geopolitical risks led to a jump in demand for risky assets, and in particular, for the Japanese yen.
The US dollar index, displaying the purchasing power of the evergreen buck against the trade-weighted basket of six leading currencies, was intact keeping to 90.17, staying close to a two-week high of 90.25, reached on Friday.
Demand for the US currency is still high after recent statements by the US financial institution that with sustained economic surge more interest rate hikes are expected in 2018.
A higher interest rate, as a rule, acts as a support for the US currency, as it makes dollar assets more attractive for profit-seeking investors.
Besides this, the Japanese yen headed south against the dollar to a minimum of two months. The currency pair USD/JPY tacked on to 107.89.
The demand for the Japanese yen traditionally inches up in times of political or economic instability. When the confidence of investors increases, the value of the Japanese currency dives.
On Saturday, North Korea announced that it was suspending its nuclear as well as missile tests, and also closing its nuclear test site before the planned negotiations with South Korea as well as the United States.
In addition to reducing geopolitical risks, the degree of tension in the trade conflict between China and the United States also receded.
The common currency dived versus the US dollar. The currency EUR/USD inched down 0.13% coming up with an outcome of 1.2271.
On Friday, the single currency slumped to a two-week minimum against the evergreen buck after ECB Governor Mario Draghi repeated that the European Central Bank is going to act cautiously when it comes to curtailing financial incentives.
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.