The ECB determination is comin’ proper up!

Can one other fee hike maintain EUR/USD’s rally previous this inflection level?

Earlier than shifting on, ICYMI, yesterday’s watchlist checked out AUD/NZD’s double prime sample after the downbeat Australian CPI report. Remember to take a look at if it’s nonetheless a superb play!

And now for the headlines that rocked the markets within the final buying and selling periods:

Contemporary Market Headlines & Financial Information:

FOMC hiked rates of interest by 0.25% from 5.25% to five.50% as anticipated, maintained bias to maintain tightening as wanted

Fed head Powell says that September assembly continues to be reside, determination to be primarily based on a pair extra CPI reviews and jobs knowledge

Canadian PM Trudeau introduced a cupboard reshuffle with a view to put extra deal with financial restoration

Australian import costs fell by 0.8% q/q as anticipated in Q2, following earlier 4.2% hunch because the export value index tumbled 8.5%

German GfK shopper local weather index improved from upgraded -25.2 studying to -24.4 vs. -24.8 forecast to replicate slight decline in pessimism

Spanish unemployment fee dipped from 13.3% to 11.6% vs. 13.0% forecast, because the variety of employed rose by 603,900 in Q2

Value Motion Information

The U.S. greenback was already on the again foot main as much as the FOMC determination, as some anticipated Fed officers to tone down their hawkish rhetoric.

Though the Fed hiked charges by 0.25% as anticipated and Powell stored the door open for a September hike, the greenback nonetheless offered off throughout the board after the announcement.

By the point the Asian markets opened, the greenback staged yet one more tumble, suggesting that merchants aren’t precisely optimistic that the U.S. central financial institution can maintain its aggressive tightening bias for for much longer.

ECB financial coverage determination at 12:15 pm GMT
U.S. superior GDP at 12:30 pm GMT
U.S. core sturdy items orders at 12:30 pm GMT
ECB press convention at 12:45 pm GMT
Tokyo core CPI at 11:30 pm GMT
Australian PPI at 1:30 am GMT
Australian retail gross sales at 1:30 am GMT
BOJ financial coverage determination arising

Use our new Foreign money Warmth Map to rapidly see a visible overview of the foreign exchange market’s value motion! 🔥 🗺️

EUR/USD 15-min Foreign exchange Chart by TV

This pair is cruising increased inside a small ascending channel seen on its hourly time-frame. Primarily based on that sharp bounce off the channel assist, bullish vibes nonetheless appear to be fairly sturdy.

Nevertheless, the rally may be reduce brief as EUR/USD approaches the channel prime, which occurs to be close to R2 (1.1150) and a minor psychological mark. That is additionally proper round its intraweek highs.

If the ceiling holds, the pair may fall again to the 1.1100 main psychological mark or the channel backside.

Sustained bearish momentum would possibly even spur a break decrease and a transfer right down to the pivot level (1.1080) or the day prior to this lows.

Upcoming top-tier catalysts just like the ECB fee determination and U.S. superior GDP launch would possibly decide the place this pair is headed subsequent. Observe that one other ECB hike is eyed whereas the U.S. progress determine may level to weaker financial exercise in Q2.

In any case, count on further volatility for this pair nearer to those main occasions!