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!
Microsoft rocketed, markets calmed down
- Bitcoin is recovering after reaching the one-month low of $28,800.
- The currencies of Australia and New Zealand may drop as the countries imposed tighter coronavirus restrictions.
- Yesterday, Fed Chair Jerome Powell proved his view that the inflation pressures would be temporary. He claimed that the Fed would start tightening the policy only when employment and inflation reach target levels.
- Oil is edging higher after a report showing another decline in US crude stockpiles.
- Microsoft joined Apple in the $2 trillion dollar club! Yesterday, the stock hit a record high of $265.50 as investors await Microsoft’s Windows 11 event.
- Follow PMI reports from the US, UK, and EU throughout the day. The better-than-expected results will lift the currency, while the worse-than-expected numbers will push it down.
EUR/USD has bounced off the lower trend line. It has even managed to break the psychological mark of 1.1900 but stopped ahead of the next round number of 1.1950. If it crosses it finally, the way up to the 200-day moving average of 1.2000 will be open. Support levels are Monday’s low of 1.1840 and early April low of 1.1750.
XAU/USD has reversed up from the 61.8% Fibonacci retracement level of $1770. If it manages to break the resistance level of $1800 at the 50% Fibo level and the 100-day MA, gold may surge to $1825. On the flip side, the move below the $1770 support will press the metal down to early April lows of $1735.
XBR/USD (Brent oil) is rallying up. If the bullish momentum sustains, crude oil may reach the psychological mark of $75. Support levels are at the recent lows of $72.00 and $71.00.
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.