Fed Meeting, Microsoft Earnings

The Fed starts its two-day policy meeting in just a couple of hours from now, and will highly likely announce a 25bp hike on Wednesday. But what Fed officials will also do is to remind investors that the tightening cycle is probably not over and that there will probably be another rate hike on the US’ horizon. So yes, there is a great chance that the Fed will spoil your mood if you are among those thinking that this week’s rate hike will be the last for this tightening cycle in the US.

Little Reason to Expect EUR/USD to Easily Regain 1.1095 Ahead of Fed/ECB Meetings

Investors probably will remain cautious to place big bets going into the Fed and the ECB meeting. Even so, the downside in US yields probably is better protect compared to Europe. In this context, there is also little reason to expect EUR/USD to easily regain the 1.1095 previous top ahead of the Fed/ECB meetings. The EUR/USD technical picture shows some cracks.

BTC/USD Analysis: Breakdown of July Support

Yesterday, the price of BTC/USD fell below the level of 29,700, a support that has been in place for about a month.

Several Ways Euro Could Get Disappointed at Thursday's ECB Meeting

It is probably the most important week yet this year as the ECB, the Fed and the BoJ are holding their last rate-setting meetings before the summer lull. The market is confident for another 25bps hike from the ECB but what about September? Also, could Thursday’s meeting act as a tailwind for the euro against the pound, the best performing currency of 2023?

China Stimulus Hopes Lift Sentiment But Caution Lingers

The mood across Asian markets brightened on Tuesday as China’s pledge to shore up its weak economy lifted sentiment and boosted Chinese shares.

All Eyes on Bitcoin's Next Move

Bitcoin fell below $29K on Monday for the first time since 21 June. Monday afternoon saw the rapid implementation of a deepening correction. The first cryptocurrency fell to its 50-day moving average and touched the 61.8% Fibonacci retracement of the rally from the June lows. Now Bitcoin is cooled enough, so its next move could be the prologue to a relatively long trend. Consolidation below $29K could signal the break of the medium-term bull trend.

Japanese Yen Shrugs as BoJ Core CPI Ticks Lower

The Bank of Japan’s preferred inflation indicator, BoJ Core CPI, ticked lower to 3.0% in June, down from 3.1% in May and matched the consensus estimate. The Japanese yen’s reaction was muted, but traders continue to keep a very close eye on inflation reports ahead of Friday’s BoJ meeting.

Markets Steady Ahead of Fed and ECB, China Stimulus Promise, Unilever Rallies after Results

It's been another relatively flat session for equity markets, with investors seemingly having one eye on the Fed and ECB later in the week despite a strong showing in Chinese stocks earlier in the day.

AUD/USD Jumps Ahead of Australian Inflation

Australia releases the second-quarter inflation report on Wednesday. The consensus is expecting inflation to slow down to 6.2% y/y after a 7.0% print in the first quarter. The core trimmed mean measure of CPI, a key gauge of underlying inflation, is expected to fall from 6.6% to 6.0%.

FOMC Day, Look Out for Fed Chair Powell's View on Inflationary Expectations

The US Federal Reserve FOMC meeting will conclude later today where the interest rates futures market based on the CME FedWatch tool has priced in almost a 100% chance of a 25 basis points (bps) hike to bring the Fed Funds rate to 5.25% to 5.50%, and a 20% chance of another 25 bps hike for the Fed Funds rate to hit the terminal rate of 5.50% to 5.75% on the next FOMC meeting in September before the expected first rate cut to materialize in either May or June next year.