Focus on Fed Interest Rate Decision.
The foreign exchange (FX) markets witnessed dynamic movements on 25th July 2023 as markets reacted to critical data releases and geopolitical developments. Here’s a recap of the events that shaped the market for the currencies GBP, EUR, and USD:
GBP (British Pound): The British Pound (GBP) faced mixed trading conditions on 25th July. Markets closely monitored the UK’s economic data releases and any updates regarding Brexit negotiations. The GBP was influenced by market sentiment surrounding economic indicators and geopolitical developments. The only Key Data for this week, PMI(Purchasing Managers’ Index), was released yesterday and came in slightly lower than expected.
EUR (Euro): The Euro (EUR) faced further headwind yesterday due to the lingering effect of the Eurozone’s PMI (Purchasing Managers’ Index) figures. The negative PMI data raised concerns about the Eurozone’s economic recovery and weighed on the EUR’s performance. Later this week, the release of the European Central Bank’s (ECB) monetary policy decision statement will provide insights into the central bank’s stance on interest rates and other monetary policy measures.
USD (United States Dollar): The United States Dollar (USD) encountered mixed performance on 25th July, influenced by geopolitical developments and anticipation of the Federal Reserve’s interest rate decision. Markets awaited the Federal Reserve’s rate decision, which was scheduled for later today. The anticipation of the central bank’s monetary policy decisions added to the USD’s volatility.
- Eurozone PMI Data: The release of Eurozone PMI data for July showed contraction in both the region’s manufacturing and services sectors. The negative PMI data raised concerns about the Eurozone’s economic recovery and weighed on the EUR’s performance.
- ECB Monetary Policy Decision Statement: Markets braced for the European Central Bank’s monetary policy decision statement, scheduled for tomorrow. The statement could provide insights into the central bank’s stance on interest rates and other monetary policy measures, influencing the EUR’s movements.
- Federal Reserve Rate Decision: The biggest data release of the day, the Federal Reserve’s interest rate decision, will provide insight into the overall health of the US economy and will have an affect on the value of the USD.
|USD Fed Interest Rate Decision
|USD Fed's Monetary Policy Statement