Tuesday July 30th, 2024

As we approach Fed’s decision day, the USD is flat, equities are up, oil trades lower while treasury yields rise. Quiet start to the trading day as market awaits the Fed’s interest rate decision – more precisely the minutes from their meeting. No movement on the interest rate front is expected however, the market will be looking for signs that the Fed will lower rates in September. With the cooling inflation figures there is some talk that the Fed may ease 3 times in 2024.

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In other news.?Venezuelans took to the street after Maduro claimed victory in the presidential elections. The opposition has disputed Maduro's declaration as fraudulent, saying its candidate Edmundo González won convincingly with 73.2% of the vote. Kremlin says Venezuelan opposition should accept defeat and congratulate Maduro on election win. Netanyahu vows retaliation against Hezbollah after weekend strike as US warns against escalation. The United States on Monday unveiled $1.7 billion in lethal assistance for Ukraine.

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In currency news. The CNY inched lower against the USD, weighed down by weaker official guidance and concerns about China's economy. The AUD & NZD were pinned near multi-month lows as investors counted down to key local inflation data and a trio of central bank meetings. The ZAR pared the previous session's losses, as markets waited on the outcome of a Fed reserve interest rate decision. The USD is trading lower against the CNY (0.09%), MYR (0.37%) while gaining strength against the JPY (0.51%). AUD and NZD are mixed this morning with the AUD losing 0.06% against the greenback while the NZD strengthen 0.36%. The trading currencies rose against the USD with the ZAR appreciating 0.81% and the MXN 0.06%.

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In commodity markets.?Oil steadied near its lowest levels since early June as worries about demand in China. Gold prices edged higher (0.20%) as investors awaited the Federal Reserve's commentary on its monetary policy and a deluge of U.S. economic data due later in the week. Silver is off 0.2%. Funds have slashed their long positions on the copper market as high and rising inventories cause a collective re-think of the market's short-term prospects. In the agricultural commodities, wheat is off 0.66% while soybean by dropped 0.55%.

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Current level USD Index???????????????104.571 ? ? ? ? ? ?Up 0.01%

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The USD/CAD gave up some ground on the back of a dovish sentiment surrounding the Fed’s actions in 2024. However, the move lower is limited due to the pressure on oil prices.

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Current level USD/CAD???????????????1.3845???????????? Down 0.05%

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The EUR/CAD continues to trade in a tight range hovering near the 2024 highs.

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Current level EUR/CAD????????????????1.5001??????????? Up 0.09%

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The EUR/USD appreciated this morning after an upbeat Eurozone GDP report. All eyes are focused on the Fed interest rate decisions/minutes expected to be released tomorrow.

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Current level EUR/USD????????????????1.0834??????????? Up 0.12%

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The GBP/EUR continue to trade in a tight range despite the better-than-expected Eurozone GDP report.

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Current level GBP/EUR???? 1.1858 (0.8425)????????Down 0.20%

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The GBP/USD trades in a tight range as the pair consolidates focusing on interest-rate decisions by Fed and the BoE on Wednesday and Thursday, respectively.

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Current level GBP/USD????????????????1.2856 ???????????Down 0.02%

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