The king dollar slipped against most majors on Wednesday as the USD traders remained cautious of FOMC interest rate decision and the Fed Chair Jerome Powell press conference. The central bank is scheduled to issue its policy statement at 18.00 GMT. The Federal Open Market Committee is expected to discuss the rising inflation pressures, especially after the recent US inflation data showed the US consumer prices posted the biggest rise in 13 years.
Wall Street ended lower on Tuesday despite strong earnings results from the big tech giants. The US indices retreated from the record highs after the US durable goods orders for June came in much weaker than expected.
On the earnings front, the tech giants Facebook, Boeing, PayPal, and Pfizer are amongst those reporting the last quarter financial results today.
Crude oil prices recovered from the previous session losses after the release of stronger-than-expected API inventory data. The data showed the US crude inventories fell by 4.728 million barrels in the week ended July 23rd, 2021.
In the currency market, The British pound was among the best-performer currency pair during this week. The currency pairs hit a fresh weekly high against the US dollar and Euro on Wednesday. While the EURO struggling to find the upside momentum after the release of weak Gfk German Consumer Climate data.
The precious metal remained under pressure after the US dollar gained bullish momentum ahead of the FED meeting. Overall, the metal momentum remained bearish throughout this week.
On the data front, the Australian Bureau of Statistics released the second-quarter inflation data. The data showed the annual inflation increased to 3.8 percent in the June quarter from 1.1 percent in the March quarter. On a quarterly basis, the CPI rose 0.8% in the June quarter, compared to the market forecasts of a 0.7% increase.
Moving ahead today, the important events to watch:
Canada – CPI: GMT – 12.30
US – EIA crude inventories: GMT – 14.30
US – FOMC interest rate decision and statement: GMT – 18.00
Worldwide, more than 194.5 million people have been confirmed infected and more than 4.1 million have died. The United States has confirmed over 34.5 million cases and has had more than 610,700 deaths from COVID-19, the highest totals in the world.
EURUSD: The currency pairs retreated back to near 1.1800 level after the pair failed to break above the 1.1840 resistance level.
The important levels to watch for today: Support- 1.1750 and 1.1710 Resistance- 1.1850 and 1.1890.
GOLD: The metal is expected to be extra volatile today after the FOMC decision. The expected trading range for gold today is between 1770 support and 1832 resistance.
The important levels to watch for today: Support- 1788 and 1780 Resistance- 1810 and 1820.
Quote of the day: “The stock market is a battlefield. Always remember to survive in the game first. Only those that survive the battle can enjoy the spoils of the war.” – Benjamin Lee.