The U.S. is printing the primary studying of its Q2 GDP!
How will USD pairs react? Will the discharge have an effect on EUR/USD’s short-term downtrend?
Earlier than transferring on, ICYMI, yesterday’s watchlist checked out a confluence of inflection factors on GBP/AUD’s 1-hour chart. Make sure to try if it’s nonetheless a legitimate play!
And now for the headlines that rocked the markets within the final buying and selling periods:
Contemporary Market Headlines & Financial Knowledge:
Inflation, protection plane purchases push U.S. core sturdy items 1.9% greater vs. 0.8% anticipated in June
U.S. pending residence gross sales plunge by 8.6% in June as demand is weighed down by surging mortgage charges
EIA: U.S. crude stockpiles drop as exports surge to file excessive final week
As anticipated, Fed hikes charges by 75bps to 2.25%-2.5% vary, the best since December 2018
Powell: The trail [to a soft landing] has clearly narrowed and will slender additional
Powell: One other “unusually massive” improve in rates of interest could also be acceptable in September
Powell: It is going to probably change into acceptable to “gradual the tempo of will increase” whereas assessing affect of coverage changes
Powell: Time to go to a gathering by assembly foundation and never present clear steering
Australia’s retail gross sales momentum slowed from 0.9% to 0.2% in June
U.S. advance GDP at 12:30 pm GMT
U.S. preliminary jobless claims at 12:30 pm GMT
U.S. Treasury Sec Yellen to offer a speech in DC immediately
Tokyo’s core CPI at 11:30 pm GMT
Japan’s unemployment fee at 11:30 pm GMT
Japan’s industrial manufacturing at 11:50 pm GMT
Japan’s retail gross sales at 11:50 pm GMT
AU quarterly PPI at 1:30 am GMT at 5:00 am GMT (Jul 29)
Japan’s shopper confidence at 5:00 am GMT (Jul 29)
Use our new Foreign money Warmth Map to rapidly see a visible overview of the foreign exchange market’s worth motion! 🔥 🗺️
When you didn’t catch sufficient motion from the Fed’s rate of interest improve, then immediately’s U.S. advance GDP launch would possibly get you a pip or two.
Markets see Uncle Sam rising by 0.4% in Q2 after contracting by 1.6% in Q1 however some predict that the financial system will print its second adverse progress this week.
Two consecutive adverse progress quarters would put the U.S. financial system in a technical recession!
As you may see, EUR/USD is buying and selling on the prime of a descending channel proper when the 100 SMA crossed beneath the 200 SMA on the 1-hour time-frame.
An upside shock would work in favor of those that have already noticed EUR/USD’s short-term downtrend. EUR/USD may drop beneath the SMAs and revisit the 1.0100 earlier help zone.
However what if immediately’s numbers encourage risk-taking?
If the U.S. narrowly avoids a technical recession, then we may see extra of the risk-taking and anti-USD theme that we’ve been seeing this week.
EUR/USD may bust above its channel resistance and goal earlier areas of curiosity like 1.0270 or 1.0350.
Don’t even consider lacking immediately’s launch!