Focus on FOMC

lmportant news this week:

• Wed, 29th Jul, 03:30 CET AU Consumer Price Index.
• Wed, 29th Jul, 20:00 CET US FOMC Interest Rate Decision.

• Thu, 30th Jul, 13:00 CET UK BoE Interest Rate Decision.
• Thu, 30th Jul, 14:30 CET US PCE Price Index.
• Fri, 31st Jul, tentative JP BoJ Interest Rate Decision.

Rotation continues as markets await the FOMC decision

Equity markets remain mixed as investors continue rotating out of AI and high-growth technology stocks into more traditional blue-chip names. The Dow Jones is outperforming, while the DAX remains one of the strongest major indices, supported by industrial and value-oriented sectors. The Nasdaq continues to lag as technology stocks struggle to regain momentum. Attention now turns to today's FOMC decision, with markets having largely priced in another rate hike. The focus will be less on the decision itself and more on the Fed's guidance regarding inflation and future policy.
Precious metals are recovering after recent weakness, suggesting bargain buying is emerging ahead of the central bank announcement. Cryptocurrencies have also stabilised, with Bitcoin and major altcoins trading firmer as sentiment improves slightly. In FX markets, the Euro and British Pound remain broadly sideways against the US Dollar, while the Australian Dollar is underperforming. The weakness in AUD points to a slightly more cautious risk environment, even as equity markets remain relatively resilient.

Market talk

Today's FOMC meeting is expected to be the main market driver. If the Fed maintains a hawkish tone and signals that rates will remain higher for longer, the US Dollar could strengthen further and renew pressure on equities, metals, and cryptocurrencies. A more balanced or dovish message, however, could support another leg higher in risk assets. With markets already positioned for a rate hike, the wording of Chair Jerome Powell's press conference is likely to determine the next major move across FX, equities, and commodities.

Tendencies in the markets

Equities mixed, USD stronger (FOMC!), crypto positive, oil sideways, Silver sideways, Gold sideways.