Key Updates: BoJ, Euro Inflation, and Fed Decisions
Today’s Key Data
- BoJ Interest Rate Decision: The Bank of Japan raised the interest rate to 0.25%, surprising markets that had expected it to remain at 0.1%. This decision reflects concerns about inflation and economic growth (Investing.com France) (DailyFX).
- The Euro Area Inflation Rate YoY Flash for July: Is expected to be released at 10 AM today. The previous rate was 2.5%, with market expectations predicting a slight decrease to 2.4%, while forecasts suggest it could dip further to 2.3%. (ECB Data Portal).
- US Fed Interest Rate Decision: The decision is expected later today at 07:00 PM. The current rate stands at 5.5%, and it is widely anticipated that the Federal Reserve will maintain this rate (Investing.com France) (Investing.com).
Major Currency Pairs
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EUR/USD: The Euro continues to experience downward pressure, trading near 1.0800. This is attributed to weaker-than-expected German PMIs and growing expectations of a rate cut by the European Central Bank (DailyFX).
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GBP/USD: The British Pound shows resilience, hovering around 1.2800. Investors are cautious ahead of upcoming UK inflation data, which could influence Bank of England policy decisions (DailyFX).
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USD/JPY: USD/JPY: The Yen has strengthened against the dollar, trading around 152.000. This follows the BoJ’s decision and ongoing speculation about potential policy adjustments as Japan grapples with deflationary risks (CMC Markets) (XE).
Commodities:
Oil: Crude oil prices have remained steady, with Brent crude trading at approximately $80 per barrel. Market participants are closely watching geopolitical developments and supply data for any signs of disruptions (DailyFX).
Gold: Gold prices are stable near $2,400 per ounce, as investors await the Fed’s decision. The precious metal remains attractive as a safe haven amidst potential market volatility (CMC Markets) (DailyFX).
Political and Economic News:
- US Economy: The recent GDP growth of 2.8% in Q2 suggests a resilient economic performance, despite mixed signals from various sectors (DailyFX).
- Global Developments: Market participants are monitoring the political landscape, including the implications of the upcoming US elections and potential policy shifts in key global economies (DailyFX).