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!
The USD may be triggered by the Fed
The Federal Open Market Committee will make its statement and announce the interest rate on July 29, at 21:00 MT time. Half an hour later, the bank will hold its regular press conference with the Fed Chair Jerome Powell.
Instruments to trade: EUR/USD, GBP/USD, USD/JPY
After buying a significant amount of bonds worth trillions of dollars to support the economy, the Federal Reserve stands at a crossroads. Should the regulator unveil more stimulus during the upcoming meeting? That’s the main question, which attracts traders’ attention. On the one hand, we see that the Fed’s actions and the interest rate near zero are supporting the economy and encouraging the markets. On the other hand, rising cases of coronavirus in the US show the economy may come through a lot before a complete recovery. Therefore, further supportive actions, including additional bond purchases and careful policy guidance by the Federal Reserve may be needed.
- If the Federal Reserve is pessimistic, the USD may weaken;
- If the Federal Reserve is optimistic, the USD may strengthen.
The US dollar index breaks one resistance after another. Read the report to learn the next target for the US dollar index!
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The situation on the labor market still looks optimistic. Today we expect the Unemployment rate data. 3.5% is expected.
The first day of June should’ve brought us the US default. Unsurprisingly, the US House passes the debt ceiling bill at the latest possible moment.
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.