USD: awaiting the Fed’s decision
The Fed will meet on Tuesday and Wednesday to decide on the cost of borrowing. It is likely that the rate will be raised by 25 basis points to 5.5% per annum. The main intrigue, however, lies in the post-meeting comments from the regulatory body representatives. Any indications of a softer approach or a readiness to pause in the current phase of tight monetary policy will exert local pressure on the USD.
EUR: betting on the previous stance
The Eurozone will publish a significant amount of economic data, including information on prices and business activity. The ECB is likely to raise the interest rate at its meeting on Thursday. But what will the regulator say about the further outlook amid an environment of decreasing inflation levels? The Central Bank’s commitment to maintaining the current monetary course will support the EUR.
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JPY: no drastic changes
The Bank of Japan will also hold a meeting, but no radical changes are expected as the regulator will probably follow the current structure of monetary policy. The JPY is retreating again, and it is time to be reminded of devaluation as the main scenario for the yen.
CAD: tied to the USD
Canada will release GDP data. In addition, the CAD will be responsive to shifts in sentiment regarding the USD.
AUD: focus on inflation
Australia will release its latest inflation data. Consumer prices are expected to decline, reflecting the impact of the efforts made by the Reserve Bank of Australia (RBA). Positive inflation results will boost the AUD.
The post A Week in the Market: A Lot of Interesting Events (24-28 July) appeared first at R Blog – RoboForex.
