Market updates on July 31: the Fed decision

Market updates on July 31: the Fed decision

Key events ahead:

ADP Non-farm employment change for the US – 15:15 MT (12:15 GMT) time

Canadian GDP – 15:30 MT (12:30 GMT) time

FOMC statement – 21:00 MT (18:00 GMT) time

FOMC press conference – 21:30 MT (18:30 GMT) time

  • The market is trading cautiously ahead of the Fed monetary policy statement at 21:00 MT time. On H4, EUR/USD is consolidating between the resistance at 1.1158 and the support at 1.1132. If the rate cut happens today, the USD will weaken. In that case, the break of the 1.1158 level will happen and the next resistance level will lie at 1.1174. After that, pay attention to the 1.1198 resistance level. If the Fed chair surprises the market with no changes to the interest rate, the pair will slide below the 1.1132 level to the next support at 1.1116. If this level is broken, the euro will fall towards the 1.1086 level. If we look at MACD we can see that it is placed closed to the 0 level, which signals a possible reversal.

EURUSDH4.png

  • GBP/USD stopped falling and started to wait for the Fed to determine its further direction. If the Fed is dovish, the cable may break the 1.2168 level and target the next resistance at 1.2197. After that, bulls may push the pair higher to the 1.2225 level. In the case of the Alternative scenario, GBP/USD will move below the support at 1.2145. The next support will lie at 1.2118. If the pair manages to overcome this level, the further fall to the 1.2017 level may happen on the fears of a no-deal Brexit.

GBPUSDH4.png

  • USD/JPY has been trading sideways, too. After the end of a new round of US-China trade negotiations, Chinese policymakers said that the US needs to show enough sincerity in reaching a deal. The news pulled the USD/JPY pair lower during the Asian trading session. Now all eyes are on the Fed decision. If the rate cut is confirmed, the pair will fall below the 108.51 level. The next support will lie at 108.45. After that, the pair may reach the 108.33 level. From the upside, pay attention to the upper border of the consolidation range at 108.64-108.7. The next key level for bulls lies at 108.8.

USDJPYH4.png

  • The FOMC statement will show whether the uptrend for gold will continue. On H4, the yellow metal has been knocking the resistance at $1,433. If it’s broken, the next resistance level will lie at $1,438. After that, the price for gold may reach $1,448 level. In case of the supported US dollar, the levels at $1,428, $1,424 (50-period SMA) and $1,420 will be in focus.

XAUUSDH4.png

Similar

Will the CPI Crash the USD?
Will the CPI Crash the USD?

 The most impactful releases of this week will fill the market with volatility and sharp movements. Be ready to take action!

Latest news

Gold Rises as Central Banks Buy More
Gold Rises as Central Banks Buy More

About 24% of global central banks intend to increase gold reserves in 2023. Rising inflation, geopolitical turmoil, and worries about interest rates are reasons to increase gold reserves.

US Evades Default This Time
US Evades Default This Time

Greetings to a brand new week full of events, economic releases and US debt frictions. We are here to tell you everything you need to know!

USD Gains Momentum
USD Gains Momentum

The US dollar index breaks one resistance after another. Read the report to learn the next target for the US dollar index!

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera