NZD/USD: testing tactical support
The Reserve Bank of New Zealand made announcements regarding its monetary policy. The NZD/USD dropped.
Will the Fed cut its rate?
The Federal Open Market Committee will release its statement and announce the interest rate on July 31, at 21:00 MT time. After that, the Fed Chair Jerome Powell will hold a press conference at 21:30 MT time.
The market is awaiting the rate cut. Analysts bet that the cut from 2.5% to 2.25% has a high possibility to happen. During the testimony earlier this month, Mr. Powell hinted that easing is needed to support the current economic conditions of the US. According to him, they may be affected by the worsening global economic outlook and trade tensions. The US dollar weakened after his words. Let’s see if the head of the Federal Reserve surprises the market.
• If the Fed cut the rate, the USD will weaken;
• If the Fed does not cut the rate, the USD will strengthen.
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