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Pound Gains While Markets Jittery ahead of Federal Reserve Decision

Pound News: Sterling Benefits from Weaker Rival Currencies

The Pound made gains today as it regained some losses against the Euro and continued edging higher against the US Dollar.

Despite mixed UK data, the Pound rose thanks to weakness in the US Dollar as markets speculated that the UK’s economy is improving and there is a chance of a UK-EU deal after comments from the EU’s chief negotiator, Michel Barnier.

UK car production data and Nationwide housing prices due tomorrow are unlikely to have a big impact on the Pound’s movement. Instead, Sterling will continue to be driven by rival movement as markets await more UK developments.

 

Euro News: EUR Slips from Best as Markets Await Federal Reserve Decision

The Euro remains one of the market’s most appealing major currencies. However, investors sold the currency from its best levels today as markets adjusted positions ahead of an anticipated Federal Reserve monetary policy meeting and interest rate decision.

Much of this week’s most influential Eurozone data will be published tomorrow. As well as this evening’s Fed’s rate decision news, the Euro will also spend tomorrow reacting to German growth data and Eurozone confidence.

 

US Dollar News: Expectations for Gloomier Fed Keep USD Low

The US Dollar has been unable to benefit from safe-haven demand lately due to worsening US coronavirus fears. In fact, US coronavirus concerns have made analysts speculate that the Federal Reserve could take a more dovish tone in this evening’s policy decision.

If the Fed signals that more dovishness is on the way, the US Dollar outlook could see even deeper weakness. Looking ahead to tomorrow, US growth rate data is forecast to show a contraction of just over a third, which will also influence the US Dollar.

 

Canadian Dollar News: CAD Continues to Slump amid Lack of Support

The Canadian Dollar continues to be one of the market’s least appealing major currencies. As global trade concerns deepen along with ‘second wave’ coronavirus fears, trade-correlated currencies like CAD are being hit especially hard.

Meanwhile, Canada’s domestic outlook has not been strong enough to boost support, with Canada’s latest wage data will be published tomorrow. Instead, Canadian Dollar investors will remain focused on shifts in global trade sentiment and oil prices.

 

Australian Dollar News: AUD Continues to Show Resilience

Despite lower market demand for risk-correlated currencies this week, the Australian Dollar has been able to avoid major losses. It is holding its ground against a climbing Pound today, amid hopes for economic resilience in Australia.

Australia’s building permits data could cause some ‘Aussie’ movement tomorrow. However, the Australian Dollar is most likely to be influenced by the Federal Reserve’s stance this evening.

 

 

Upcoming Data

 Thursday, 30th July

02:30    Australian Building Permits

08:55    German Unemployment Rate

09:00    ECB Economic Bulletin

09:00    German Growth Rate

10:00    Eurozone Unemployment Rate

10:00    Eurozone Confidence

13:00    German Inflation Rate

13:30    Canadian Weekly Earnings

13:30    US Growth Rate

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