The market sentiment is mixed, but there are still interesting movements on the market.
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.
US Core monthly retails sales will be announced on Friday at 15:30 MT time.
Stock significantly surged: S&P 500 and Nasdaq reached 6-week highs. The market sentiment may deteriorate today as Johnson & Johnson’s Covid-19 vaccine trails have been stopped because of the unexplained illness.
Canada’s retail sales will be out on October 21 at 15:30 MT time. Get ready with us for this event!
The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
The uncertainty over US fiscal stimulus and Brexit, and also rising new virus cases deteriorated the market mood. That’s why we can expect the further rally of the US dollar and the fall of riskier assets today.