Fed meeting looms

July 29, 2020

A big day coming up for markets, culminating in the latest Fed Reserve interest rate meeting tomorrow morning.

The EURUSD took a break from the recent gains and finished the session slightly lower. The pair opened at $1.17508 and ticked up to a high of $1.17732 early in the day. It fell away shortly afterwards, hitting lows of $1.16974 mid-session. It has come off those lows and it is now trading at $1.17180. The GBPUSD made some solid gains overnight after beginning the day at $1.28805. Mid-session trading saw the pair fall to $1.28369 before rebounding and rallying to a late high of $1.29522. It has held onto most of those gains and is currently trading at $1.29251.

Indices gave up some of their gains overnight, with both the Dow and Dax ending their sessions lower. The Dow opened at 26,620.15 and climbed to a high of 26,709.89 early in the day. The reversal began soon after and accelerated late in the day as it hit lows of 26,363.73. It has come off those lows and is now trading at 26,424.30. The Dax weakened overnight, despite a promising start to the day. The German index opened at 12,906.86 and quickly raced to a high of 12,975.87. Things turned south and the sell-off began in earnest as the Dax tumbled to lows of 12,739.58 mid-session. It has come away from those lows and is now trading at 12,789.10.

The day ahead sees the release of a stack of data, while markets will be turning their attention to the latest Fed Reserve interest rate meeting. While rates are tipped to remain on hold, markets will be waiting to see if any other monetary policy settings have changed as the US still grapples with the impact of the coronavirus.

Other data published today includes:

Australia – CPI, Trimmed Mean CPI

Europe – German Import Prices, Credit Suisse Economic Expectations

UK – M4 Money Supply, Mortgage Approvals, Net Lending to Individuals

US – Pending Home Sales, Crude Oil Inventories, Goods Trade Balance, Prelim Wholesale Inventories, Federal Funds Rate, FOMC Statement and Press Conference



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