FOMC’s Decision On Rate Hike And How It’s Affecting Greenback And Bullion Markets

• The EUR/USD is fading from its prior bull run to the 1.0250 level.
• The Bears face decent support in the 1.0100 neighborhood.

• GBP/USD falls dramatically from a one-month high as some USD buying emerges.
• The upbeat US PCE report might have revived Fed rate hike bets and favored the USD bulls.
• Bears may keep on waiting for a persistent break under the 1.2100 zone before making fresh bets.

Watch Out This Week

• Traders wait for the NFP report, which comes out on the first Friday of every month. This week’s NFP news will be released on August 5th, giving traders important details regarding potential market swings. On the same day, the unemployment rate report for both the United States and Canada will come out on August 5, which will give traders a prior directional assumption about the currency market. A figure that is greater than anticipated should be seen negatively (bearish) for the USD, whilst a figure that is lower than anticipated should be viewed favorably (bullish) for the USD. Likewise for CAD as well. 

• The 4th of August is a significant day for both USD and CAD. We anticipate data on the nation’s trade balance, which shows how a country manages trade imbalances, as well as the nation’s merchandise trade. A higher than expected value on the report is taken as a positive for the currency and vice versa.

•   Another major news on the same day to look out for, would be the BoE Interest Rate Decision that will affect some of the major pairs. A statistic that is higher than anticipated should be viewed as good (bullish) for the pound, while a figure that is lower than anticipated should be viewed as negative (bearish). 

• On the 2nd and 3rd of August, the AUD and NZD currencies have several impactful news items, among which the Australian retail sales data and New Zealand employment change report will prompt relevant pairs to move along with the general market sentiment. The AUD will get hit by another high-impact piece of news on the 2nd of August regarding the country’s interest rate decision. A result that exceeds expectations should be seen positively (bearish) for the AUD, whereas a figure that falls short of expectations should be interpreted negatively (bullish).