FOMC Minutes Loom; Canadian Inflation Eases to 2.5%
- FOMC Minutes Overview:
Minutes from the FOMC meeting are due today. Markets are waiting for any signal that hint at future Federal Reserve policy. Signs of continued monetary tightening will support the USD price action. This will affect both EUR/USD and GBP/USD. It will also affect USD/JPY.
- Canadian Inflation Data
Yesterday, Canada released its inflation data for July, with the year-on-year rate coming in at 2.5%, meeting expectation but slightly lower than the earlier month’s 2.7%. This aligns with the Bank of Canada’s expectations as they check inflation trends closely. The data suggests that inflationary pressures be easing, which influence the Bank of Canada’s future interest rate decisions. The Canadian dollar remains stable next this release.
Major Currency Pairs
[exchange-rates_badge color=”#003E80EB” amount=”1″ base_currency=”EUR” flag_type=”rectangular” decimals=”4″ base_show=”on” code=”on” symbol=”on” after=”on” id=”1714229471″ currency_list=”USD”]
EUR/USD: The euro stayed a shade lower, at 1.1121 for an intraday loss of 0.05%. The pair rose 1.03% this week. This rise was in the wake of hopes for a dovish Fed. But the FOMC minutes due out today change that.
[exchange-rates_badge color=”#003E80EB” amount=”1″ base_currency=”GBP” flag_type=”rectangular” decimals=”4″ base_show=”on” code=”on” symbol=”on” after=”on” id=”1714229471″ currency_list=”USD”]
GBP/USD: The pound trades at 1.3025, down 0.06% on the day but still up 1.59% this week. There is a slight drop seen. but, GBP/USD has still remained strong. This shows the resilience of the pound in light of economic challenges in the UK.
[exchange-rates_badge color=”#003E80EB” amount=”1″ base_currency=”USD” flag_type=”rectangular” decimals=”4″ base_show=”on” code=”on” symbol=”on” after=”on” id=”1714229471″ currency_list=”JPY”]
USD/JPY: Exchanges at 145.82, up by 0.34%. This move serves only to confirm that the dollar is holding its ground against the yen. This is due to expectations of diverging monetary policies between the Fed and the BOJ.
[exchange-rates_badge color=”#003E80EB” amount=”1″ base_currency=”AUD” flag_type=”rectangular” decimals=”4″ base_show=”on” code=”on” symbol=”on” after=”on” id=”1714229471″ currency_list=”USD”]
AUD/USD: The Australian dollar is trading at 0.6743, down slightly by 0.05%. Despite today’s decline, AUD/USD has risen 2.18% over the past week, due to stronger domestic economic data and a weaker USD.
[exchange-rates_badge color=”#003E80EB” amount=”1″ base_currency=”NZD” flag_type=”rectangular” decimals=”4″ base_show=”on” code=”on” symbol=”on” after=”on” id=”1714229471″ currency_list=”USD”]
NZD/USD: The New Zealand dollar fell 0.23% to 0.6142; but the pair remained 2.40% higher on a weekly basis, lifted by strong retail sales data.
Commodities
Gold: Gold is trading at $2,514.22 per ounce, up by 0.05% today. The precious metal has gained 2.65% over the past week, supported by expectations of a dovish Fed and ongoing economic uncertainties.
Crude Oil: WTI crude is trading at $73.09 per barrel, down by 0.11% for the day. Oil prices have been under pressure, showing a significant 5.03% decline over the week as concerns over global demand continue to weigh on the market.
Political News
There are no major political developments in the UK or the US today that are significantly impacting the markets. All eyes stay on the FOMC minutes for any signals that influence the market.