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!
Will the GBP get a boost?
GBP traders get a lot to think about. The pound’s affected by Brexit deal negotiations and the policy of the Bank of England. The most recent statements of British central bank implied that it is thinking about raising the benchmark interest rate, although everything depends on how good the British economic data are.
If the UK economy shows its strength, the central bank will raise the rate and the GBP will strengthen. On the contrary, if economic indicators disappoint, the regulator will have to delay a rate hike.
Manufacturing production is one of such key economic indicators. It will be released at 11:30 MT time on July 10.
- If the data is greater than the forecast, the GBP will rise.
- If the data is weaker than the forecast, the GBP will go down.
PMI reports from the EU, the UK, and the USA will be released during the day!
Moderna rocketed after an announcement that it is going to join the S&P 500 index. The New Zealand dollar surged after the nation’s inflation surpassed the central bank’s target level.
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.