This is what you need to know to trade today Thursday, July 8:
Markets remain bullish and the dollar refuses to fall despite somewhat pessimistic FOMC meeting minutes. The ECB will announce more flexibility on its inflation targeting after concluding its strategic review. Gold, oil and cryptocurrencies are on the defensive.
Dollar strength: The greenback has kept most of its gains, only retreating slightly after the Federal Reserve minutes showed no urgency to cut back on the central bank’s bond-buying program.
While some members saw inflation rising faster than expected, this did not surprise markets. Others stressed that the economy has not made enough progress and that more evidence is needed before acting. That message somewhat balanced the notion of the optimistic decision. The dollar fell immediately after, but rebounded.
Weekly jobless claims in the United States will drop from the 364,000 registered last week, reflecting the recovery in the job market.
The European Central Bank It has completed its strategic review and will publish the results on Thursday. ECB President Christine Lagarde is unveiling a more balanced inflation target, aiming for a symmetrical 2% target rather than one that is “below but close to 2%”.
The Frankfurt-based institution could include house prices in its consumer price index calculations, thereby pushing inflation higher and thus making the ECB’s policy more optimistic. On the other hand, including unemployment and inequality in the bank’s goals would lead to a more persimistic policy.
See: Preview of the ECB’s Strategic Review: Three Potential EUR / USD Catalysts to Watch
The EUR/USD hovering around the 1.18 region before the ECB announcement, pushed lower by the strength of the dollar and by concerns about the Delta variant in Spain and Portugal. The GBP/USD it is trading below 1.38 as concerns persist about the UK reopening.
The oro struggles to hold $ 1,800 despite lower US yields and as the dollar remains strong. The raw WTI It fell below $ 72 on Wednesday as some speculate that the United Arab Emirates could go it alone with increasing its oil production, separating from Saudi Arabia. The OPEC + meeting ended without an agreement.
The cryptocurrencies They are on the defensive, with Bitcoin struggling below $ 34,000 and Ethereum retreating below $ 2,300. The crackdown on Binance, one of the world’s largest exchanges, is weighing on sentiment.
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