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!
NFP is Eyed, OPEC Talks Continue Today
OPEC postponed its decision
OPEC members haven’t been able to agree on oil output yesterday. Saudi Arabia and Russia agreed initially to boost output 400,000 barrels a day from August, but the United Arab Emirates blocked a deal. The meeting will continue today. If OPEC+ can’t reach an agreement, it raises the possibility that crude will surge higher. Even if members agree on the output increase, the implementation of the agreement would depend on US-Iran nuclear talks. Brent oil went above $75.50, WTI oil passed $74.50.
XBR/USD (Brent oil) is at the highs unseen since 2018. If it breaks above $76.00, it will rally up further to yesterday’s high of $76.50. Support levels are at the psychological mark of $75.00 and the 50-period moving average of $74.70.
NFP is today!
The US dollar jumped ahead of the NFP report today. Investors expect an increase of 700,000 jobs in June, above May's 559,000. The better the NFP outcome – the more chances the Federal Reserve might start tapering stimulus, which in turn will push the USD up.
EUR/USD has broken below the 1.1850 support and edging lower to the psychological mark of 1.1800. The RSI indicator is at the 30.00 level, signaling the euro is oversold, but if NFP beats estimates, EUR/USD will fall further. Resistance levels are at 1.1850 and 1.1900.
Gold has recovered some losses, but still moves without any clear direction. If it jumps above the upper line of Bollinger Bands and the RSI indicator moves above 65.00, consider selling. Gold has failed to cross the key resistance of $1790 several times already and thus XAU/USD is likely to reverse down from it again. Support levels are $1765.00 and $1755.00.
Speaking about stocks, Johnson & Johnson claimed its vaccine neutralizes the fast-spreading Delta virus variant. Check out the Johnson & Johnson stock when the stock market opens at 16:30 GMT+3.
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.