Monday July 29th, 2024

We start the trading day with a stronger USD, higher equity markets, lower oil prices and treasury yield. While?today’s economic data release is light today, market participants will be focusing on the Fed’s interest decision on Wednesday.

In other news. Maduro declared winner in Venezuelan elections by the National Electoral Council’s Amoroso a close ally of Maduro. Opinion polls conducted ahead of the election had suggested González would roundly defeat Maduro. Opposition dismissed the results and promised to challenge the results. Secretary of State Blinken expressed his skepticism after the results were announced. A dozen Israeli youth were killed when a soccer field in rocket attack on Golan Heights. World leaders urge restraint as Israel considers retaliation for Golan Heights attack

In currency news. China's yuan retreats; focus on Politburo meeting, major central bank decisions. BoJ to announce interest rate decision on Wednesday, where there is rising speculation of an interest rate hike. The Australian and New Zealand dollars are mixed, as the market awaits the results of a key inflation report at home and a trio of major central bank meetings this week. Indian rupee slips to record low, pressured by month-end importer dollar bids. South African rand edges higher with eyes on Fed. The USD is trading higher against most Asian currencies, gaining 0.10% against the CNY, 0.14 against the THB while trading flat against the JPY. The AUD is trading 0.06% higher against the greenback while the NZD lost 0.22%. As for the trading currencies, the ZAR lost 0.26% against the USD while the MXN gained 0.12%.

In commodity markets. Oil prices inched up (0.12%) as Middle East conflicts intensify. Gold prices rally 0.36% as market are keeping a close high on the Fed’s interest decision, more precisely the minutes released afterward. Silver followed Gold’s lead rising 0.61%. Copper lost some ground at the start of the week as market focuses on China’s demand concerns. In the agricultural commodities, wheat is off 0.48% while soybean by dropped 1.1%.

Current level USD Index???????????????104.546 ? ? ? ? ? ?Up 0.22%

The USD/CAD lost some grounds as oil prices rises amidst increase tension in the Middle East. Market remains focused on this week’s Fed meeting.

Current level USD/CAD???????????????1.3832???????????? Flat

The EUR/CAD continues to trade near its 2024 high having kept most of the gains since July’s recent move up.

Current level EUR/CAD????????????????1.4990??????????? Down 0.22%

The EUR/USD sold off at the start of the week as the markets awaits the Fed decision later this week. Market participants are expected the Fed to openly endorse a rate cut in September while the ECB is expected to cut rates two more time in 2024.

Current level EUR/USD????????????????1.0837??????????? Down 0.19%

The GBP/EUR remains quiet at the start of the week as we await the Eurozone GDP and Germany’s CPI tomorrow.

Current level GBP/EUR???? 1.1843 (0.8439)????????Down 0.08%

The GBP/USD weakens as expectation of a BoE 25 bps cut on Thursday increases.

Current level GBP/USD????????????????1.2840 ???????????Down 0.22%