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ECB will suspend interest rate hikes, US PMI data will boost market volatility
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Hello everyone, today XM Foreign Exchange will bring you "【XM Group】: The ECB will suspend interest rate hikes, and the US PMI data will boost market volatility." Hope it will be helpful to you! The original content is as follows:
Finance markets will take a break from trade-related headlines on Thursday, July 24, and keep an eye on the European Central Bank’s (ECB) monetary policy announcements. In addition, the economic calendar will also release the initial data on the manufacturing and service purchasing managers' index (PMI) for July for Germany, the euro zone, the United Kingdom and the United States.
As the market cheered on the U.S.-Japan trade agreement, risk flows dominated the market trend on Wednesday. The major Wall Street stock index rose strongly on the daily line, with the US dollar index closing in the negative territory for the fourth consecutive day. Earlier Thursday, U.S. stock index futures rose and fell, with the U.S. dollar index steady above 97.00. U.S. President Donald Trump will visit the Fed on Thursday, the White House said late Wednesday.
Asian trading hours, Australian data showed that the S&P Global www.xmspot.comprehensive Purchasing Managers Index improved from 51.6 in June to 53.6 in July, reflecting the continued accelerated expansion of private sector business activities. Meanwhile, Reserve Bank of Australia (RBA) President Michele Bullock reiterated that it is appropriate to take cautious and gradual monetary easing measures. The Australian dollar/dollar rose more than 0.7% on Wednesday and maintained bullish momentum earlier on Thursday, trading above 0.6600, the highest since November.
Basic foreign exchange market trends:
Japan's JibunBank manufacturing purchasing managers' index fell to 48.8 in July, lower than the market expectations of 50.2. On the positive side, Jibun Bank's service industry purchasing managers index rose to 53.5 from 51.7 in the current period. USD/JPY is still facingBearish pressure, Europe traded around 146.00 in the early trading, down more than 0.3% on the day.
The ECB is widely expected to keep key interest rates unchanged after its July meeting. ECB President Christina Lagarde will speak on policy prospects at a pre-session meeting that begins at 12:45 GMT. The euro/dollar remained in the consolidation phase above 1.1750 after a slight increase on Wednesday.
The GBP/USD stabilized above 1.3550 after closing sharply higher in the first three days.
During the European session Thursday, the US dollar/Canada fluctuated narrowly around 1.3600, with a weekly decline of about 1%. Later that day, Statistics Canada will release retail sales data for May.
Bulle market fundamentals:
Because risk flow dominates the market, gold has difficulty finding demand and made in-depth adjustments on Wednesday. Gold/USD continued to move lower after falling more than 1% on Wednesday, trading below $3,370.
Analysis of major currency trends:
Euro: Euro/USD rebound from 1.1555 is still in progress, and it is biased toward an upward trend during the session, and the 1.1829 high is retested. A firm breakthrough will resume the overall rebound from 1.0176 and aim at the 1.1916 forecast level. However, a breakout of 1.1677 will delay the bullish situation and turn to an intraday bias towards neutral, with more consolidation first below 1.1829.



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