Forex Today: The Fed is largely expected to stand pat

Pablo Piovano FXStreet

The US Dollar (USD) extended further its march north on Tuesday, reaching new multi-week highs on the back of rising scepticism surrounding the trade scenario, while investors geared up for the imminent interest rate decision by the Federal Reserve and, later in the week, the publication of the crucial Nonfarm Payrolls.

Here's what to watch on Wednesday, July 30:

The US Dollar Index (DXY) climbed to five-week highs north of the key 99.00 hurdle despite declining US yields and amid a marked selling bias in the risk complex. The Fed’s interest rate decision will take centre stage, seconded by the ADP Employment Report, the advanced Q2 GDP Growth Rate, Pending Home Sales, the weekly MBA Mortgage Applications, and the EIA’s weekly report on US crude oil stockpiles.

EUR/USD tumbled to multi-week troughs and came within shouting distance of the 1.1500 support in response to the stronger US Dollar. Germany’s Retail Sales and the preliminary Q2 GDP Growth Rate are due, followed by the final Consumer Sentiment in the Euroland as well as the flash Q2 GDP Growth Rate.

GBP/USD retreated to levels last traded in mid-May, just pips ahead of the 1.3300 support, down for the fourth consecutive day. Next on tap on the UK calendar will be the Nationwide House Price Index and the final S&P Global Manufacturing PMI on August 1.

USD/JPY seems to have met some decent resistance around 148.80 amid the ongoing multi-day positive streak. Next on tap in Japan will be the BoJ’s interest rate decision, Industrial Production, Retail Sales, and Foreign Bond Investment figures, all due on July 31 .

AUD/USD fell to seven-day lows, breaking below the key 0.6500 support on the back of the persistent advance in the US Dollar. The release of the Inflation Rate will be at the centre of the debate in Oz.

Crude oil prices added to Monday’s optimism and rose to two-week tops past the $69.00 mark per barrel of WTI amid further relief on the trade front and prospects of further US sanctions against Russia.

Gold managed to regain some balance and rise modestly on Tuesday, revisiting the $3,330 region per troy ounce following US-China trade discussions and amid steady caution prior to the Fed gathering on Wednesday. Silver prices kept the choppy trade, down marginally for the day and retesting the $38.00 zone per ounce.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

GBP/USD hovers around daily lows near 1.3450

GBP/USD trades with decent losses on Thursday, revisiting the 1.3450 zone. Cable’s resumption of the selling interest comes after two daily advances in a row and follows the improved sentiment around the Greenback amid fresh concerns in the Middle East.

EUR/USD slips back to two-day lows near 1.1510

EUR/USD faces some renewed downside pressure and retests the low 1.1500s in the latter part of Thursday’s NA session. The move lower in spot comes after two daily advances in a row and follows the fresh bid bias in the US Dollar amid the re-emergence of some effervescence in the Middle East. Moving forward, US NFP data will take centre stage on Friday.

How Wall Street rigs the game [Video]

In this week’s Live from the Vault, Andrew Maguire is joined by Peter Antico and Sean Stone to discuss the Paradigm of Money - an in-depth expose of financial market corruption, from naked shorting to the two-tier system that protects Wall Street.

Dogecoin Price Forecast: DOGE sell-off seems unstoppable despite renewed retail interest

Dogecoin (DOGE) is trading under dominant selling pressure on Thursday, hovering below $0.0700, a recent support-turned-resistance level. The meme coin has shed 3% of its value in the first week of August, against a backdrop of heavier selling pressure in previous months since May highs around $0.1186.

The Fed is doing the exact opposite of what it should be doing

About the Yen: The WSJ has a front-page story about how the Fed is doing the exact opposite of what it should be doing—lending dollars to Japan to buy yen. “Put simply: America is printing dollars so Japan can buy yen.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.