The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
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 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!
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!