market overview


On Tuesday, July 26, the EUR/USD pair went down 0.03% and is trading at 1.022. The DXY Dollar Index up 0.02% and is trading at 106.50. The dollar is falling slightly ahead of the US Federal Reserve interest rate decision, which will be announced tomorrow. Fed’s two-day meeting remains on the focus of markets, with investors anticipating a rate hike to 75 basis points after a flurry of officials and heads of regional FRBs expressed concern about raising interest rates in the context of a possible recession.

Markets overview

Analysts warn of an economic slowdown and a potential crisis amid record-high fuel prices, which will ultimately affect consumer demand and move prices higher to the final buyer.

Walmart’s profit warning on Monday, which said shoppers were tightening their belts, became the latest sign that the situation is getting complicated, after several weeks of a rather mild decline in its activity consumers in the “West”.

Meanwhile, the euro is consolidating after rising last week. Since Russia will still not be able to supply gas through Nord Stream 1. So yesterday it was announced that Gazprom has stopped the 2nd turbine, at full load of the first turbine will only allow to pump 20% of the total capacity of the gas in pipeline. Recall that before stopping gas shipments, Nord Stream was operating at 40% capacity, and the return This is the number that analysts had expected.

Regarding macroeconomic statistics, yesterday in the United States learned the data of the national activity index from the Chicago Fed for June, which showed a decrease of 0.19 points from a similar decrease of 0, 19 points in the previous month. The index of business activity in the industrial sector from the Fed of Dallas for July fell 22.6 points from a drop of 17.7 points the previous month. Across the Atlantic, in Germany, data on the IFO business optimism index for July was released, up to 88.6 points (2-year low), 92.2 points lower than 92.2 points. in June and a consensus forecast from analysts is 90.2 points.

Today in the US will release May data on the home price index from S&P Global / CaseShiller, June new home sales data and CB consumer confidence data for July. EUR/USD is above the 1.018 resistance, trading at 1.022. Stochastic is near the border of the overbought zone, suggesting more limited growth next day.

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