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!
Japan business mood improves as revival broadens
Japanese big manufacturers' business confidence definitely improved for a second straight quarter to reach a one-and-a-half year peak in March, as a closely watched central bank poll revealed. That’s a sing that the benefits of an export-driven economic revival were broadening.
Service-sector sentiment surged for the first time in six quarters and companies remained upbeat on their capital expenditure plans, as the Bank of Japan's "tankan" poll disclosed, thus giving a hope that the economic revival will gain momentum in coming months.
While separate PMI data highlighted a moderate slowdown in manufacturing activity in March, the positive tankan backs a dominant market view that the major bank's next policy move would be to tame rather than expand its monetary stimulus.
Additionally, the headline index, assessing big manufacturers' business sentiment added to +12 in March from +10 three months ago, as the tankan revealed on Monday.
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.