The ECB determination is comin’ proper up!
Can one other price hike maintain EUR/USD’s rally previous this inflection level?
Earlier than transferring on, ICYMI, yesterday’s watchlist checked out AUD/NZD’s double prime sample after the downbeat Australian CPI report. You should definitely take a look at if it’s nonetheless play!
And now for the headlines that rocked the markets within the final buying and selling periods:
Contemporary Market Headlines & Financial Information:
FOMC hiked rates of interest by 0.25% from 5.25% to five.50% as anticipated, maintained bias to maintain tightening as wanted
Fed head Powell says that September assembly continues to be reside, determination to be based mostly on a pair extra CPI stories and jobs information
Canadian PM Trudeau introduced a cupboard reshuffle to be able to put extra deal with financial restoration
Australian import costs fell by 0.8% q/q as anticipated in Q2, following earlier 4.2% droop because the export worth index tumbled 8.5%
German GfK shopper local weather index improved from upgraded -25.2 studying to -24.4 vs. -24.8 forecast to replicate slight decline in pessimism
Spanish unemployment price dipped from 13.3% to 11.6% vs. 13.0% forecast, because the variety of employed rose by 603,900 in Q2
Value Motion Information
The U.S. greenback was already on the again foot main as much as the FOMC determination, as some anticipated Fed officers to tone down their hawkish rhetoric.
Though the Fed hiked charges by 0.25% as anticipated and Powell saved the door open for a September hike, the greenback nonetheless bought off throughout the board after the announcement.
By the point the Asian markets opened, the greenback staged one more tumble, suggesting that merchants aren’t precisely optimistic that the U.S. central financial institution can maintain its aggressive tightening bias for for much longer.
ECB financial coverage determination at 12:15 pm GMT
U.S. superior GDP at 12:30 pm GMT
U.S. core sturdy items orders at 12:30 pm GMT
ECB press convention at 12:45 pm GMT
Tokyo core CPI at 11:30 pm GMT
Australian PPI at 1:30 am GMT
Australian retail gross sales at 1:30 am GMT
BOJ financial coverage determination arising
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This pair is cruising greater inside a small ascending channel seen on its hourly time-frame. Based mostly on that sharp bounce off the channel assist, bullish vibes nonetheless appear to be fairly robust.
Nevertheless, the rally could be minimize brief as EUR/USD approaches the channel prime, which occurs to be close to R2 (1.1150) and a minor psychological mark. That is additionally proper round its intraweek highs.
If the ceiling holds, the pair may fall again to the 1.1100 main psychological mark or the channel backside.
Sustained bearish momentum may even spur a break decrease and a transfer right down to the pivot level (1.1080) or the day gone by lows.
Upcoming top-tier catalysts just like the ECB price determination and U.S. superior GDP launch may decide the place this pair is headed subsequent. Notice that one other ECB hike is eyed whereas the U.S. development determine may level to weaker financial exercise in Q2.
In any case, anticipate further volatility for this pair nearer to those main occasions!