The United States Federal Reserve will be issuing the minutes from the July Federal Open Market Committee meeting at 18:00 GMT today. Such as the Federal Reserve rate cut by twenty-five basis points on 31 July, but the Chairman Powells avoided indicating further rate cut.
Economic Events to Watch Today
Let’s took at these fundamentals
EUR/USD – Daily Analysis
Today in the early Asian market, the EUR/USD currency pair currently trading at 1.1095, hit the bullish level of 1.1105. Yesterday, the EUR/USD increased by 0.19%, closing 5-day losing streak.
However, the recent increases could be erased if the Italian treasury yields increase due to political risk, and the second reason is Federal Reserve minutes approve Powells Chairman objection to cut rates aggressively.
Moreover, the Italian government failed yesterday, shifting the key Europan nation into a new period of uncertainty and crisis. Despite this, the ten-year Italian government bond yield dropped by more than -basis points.
Meanwhile, the bond market response shows all investors understand the political crisis would be settled soon, possibly paving the idea for a new combination government.
Such as the Federal Reserve rate cut by twenty-five basis points on 31 July, but the Chairman Powells avoided indicating further rate cut.
The EUR/USD currency pair might increase to 1.1150 due to minutes shows the market’s concerns regarding international recession, leaving a negative impact on the United States economy. That will raise the possibilities of further easing, which is held in September.
Daily Support and Resistance
S3 1.1008
S2 1.1049
S1 1.1073
Pivot Point 1.109
R1 1.1114
R2 1.1131
R3 1.1172
EUR/USD – Trading Tips
Ahead of FOMC meeting minutes, consider staying bearish below 1.1095 to target 1.1065 and 1.1030.
USD/JPY – Daily Analysis
Today in the early Asian market, the USD/JPY currency pair hit the bearish level of 106.16, and the pair is currently trading at 106.37, the pair break a 3-day winning streak yesterday due to the United States treasury yields declined.
As of writing, the United States 2-year treasury yields fell from 1.52% to 1.49% yesterday, and the benchmark ten-year yields fell from 1.59% to 1.55%. The drop which came in yields is likely weakened the buying level around the U.S. dollar.
The USD/JPY pair could be increased further due to Federal Reserve minutes if the equities recover poise. Moreover, the S&P 500 index also lost by 0.79%, closing a 3-day winning streak and increasing the buying condition near the anti-risk JPY.
The United States Federal Reserve will be issuing the minutes from the July Federal Open Market Committee meeting at 18:00 GMT today. Such as the Federal Reserve rate cut by twenty-five basis points on 31 July, but the Chairman Powells avoided indicating further rate cut.
Probably, the U.S. Dollar could increase across the board if the Federal Reserve minutes represent the board members are unwilling easing aggressively.
A little recovery could be associated with the 0.17% increase in the S&P 500 futures. The United States ten-year yield, however still flat near 1.56%.
Daily Support and Resistance
S3 105.47
S2 105.9
S1 106.08
Pivot Point 106.33
R1 106.51
R2 106.77
R3 107.2
USD/JPY – Trading Tips
Consider staying bullish above 106.33 to target 106.800 and 107.450.
GBP/USD – Daily Analysis
Today in the early Asian market, the GBP/USD currency pair hit the bullish market during the previous day and currently trading near the 1.2165 due to confidence surrounding safe Brexit, which is a support to the GBP/USD currency pair.
The GBP/USD buyers got some support from the German Chancellor Angela Merkel’s strategic statements before the United Kingdom Prime Minister Boris survey. Besides this the Chancellor still strong on the European Union Brexit agreement but also stated that the Irish backstop is a problem of the political declaration on future relations.
On the other hand, said that he would start discussions with Europan Union leaders with a lot of aggression as disputes remain between the United Kingdom and European Union position over the departure agreement.
President Boris Johnson will start his 2-days visit to Germany and France today. This will be the very 1st Europan Union survey of President Johnson. On the flip side, the headline regarding Brexit, the market will also keep a check on the Federal Reserve Open Market Committee minutes.
Moreover, different news regarding the Federal Reserve future forecast and trade discussion progress with China also fail to give much momentum.
Daily Support and Resistance
S3 1.1906
S2 1.2022
S1 1.2095
Pivot Point 1.2138
R1 1.2211
R2 1.2254
R3 1.237
GBP/USD – Trading Tips
Consider staying bullish above 1.2080 in GBP/USD with a target of 1.2170 and 1.2260. All the best!
