Market Opportunities : Week 24-07-2023 - 28-07-2023

USDIDX: Federal Reserve interest rate decision is the key event in the July 24 - 28 week. Fed chair Jerome Powell will hold a conference on July 26. Several members of Federal Open Market Committee have voiced their support for implementing another rate hike. Recent lower June inflation data have spurred some speculation policy makers may not feel as hawkish as just a week ago. Majority of traders expect a 25 basis points increase in the benchmark rate. In case the Fed stands pat at its July 26 meeting the USDIDX will get a bearish impulse.

EURUSD: European Central Bank interest rate decision is a major economic event for forex market. European Central Bank will hold its conference on July 27. ECB has stated its intention to raise rates to curb inflation back to its target rate of just above 2%. And German inflation bucked downward trend in June with higher than expected rise. Another 25 basis points increase in the benchmark rate will be bullish for the EURUSD.