Here is what you need to know on Thursday, July 29:
The dollar is down after the Fed seems to be in no rush to taper bond buys, providing support to stocks and gold. The first release of US GDP is in the spotlight on Thursday. Covid continues spreading in the US and also bumping up in the UK. Cryptocurrencies have stabilized on higher ground.
Tapering can wait: The Federal Reserve has left its policy unchanged as expected and said it would consider adjusting its bond-buying scheme in "coming meetings." It continues seeing inflation as transitory and Fed Chair Jerome Powell characterized "substantial further progress" in the labor market as still "a ways off."
While Powell seemed less worried about the economic impact of the Delta covid variant, he refused to provide any comment about the Fed's next big even – the Jackson Hole Symposium. With the lack of urge to decrease the bank's $120 billion/month purchases of bonds, the dollar dropped sharply across the board.
- FOMC : The statement giveth and Powell taketh away
- Fed Analysis: Powell only takes a baby step toward tapering, why the dollar could dive
EUR/USD is hovering around 1.1860, the highest in two weeks and as coronavirus cases continue moving up in the old continent. Germay's employment figures are eyed.
GBP/USD is hovering well above 1.39, the highest since June, despite a bump up in covid cases in the UK, breaking a seven-day streak of drops. Nevertheless, UK infections are off the peak.
In stock markets, Facebook's results and projections somewhat disappointed, but Chinese authorities continue easing pressures on tech companies after Beijing's crackdown on several firms early in the week. The overall mood in global markets is positive. AUD/USD is trading closer to 0.74.
USD/CAD is changing hands below 1.24, benefiting from the risk-on mood, and the rise of WTI Crude Oil to around $73 and after Canada reported mixed results.
The highlight of the day is America's first release of Gross Domestic Product data for the second quarter. Economists expect bumper annualized growth of 8.6%.
Deal: A bipartisan group of Senators and the White House reached an agreement on a $1 trillion infrastructure spending bill. The legislation still has additional hurdles to pass and Democrats are already mulling an additional, larger package.
Cryptocurrencies have been consolidating their gains, with Bitcoin clinging to $40,000 and Ethereum around $2,300.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.