The days that are to come will bring important events. The Fed is due to wrap up its key interest rate meeting on Wednesday, followed by the European Central Bank (ECB) a day later and the Bank of Japan (BoJ) on Friday.
He euro extends its decline this Tuesday, July 25 for the fifth consecutive sessionsince the economy of Europe shows obvious signs of slowing down. Meanwhile, the pound sterling manages to stabilize, and the Chinese yuan strengthens thanks to the commitment of the country’s leaders to implement supportive policies for its faltering economy.
The week was turning out to be crucial for the markets, with important events to come. The Federal Reserve would conclude their price-setting meeting interest rates on Wednesday, followed by the European Central Bank (ECB) a day later and the bank of japan (BoJ) on Friday. In addition, corporate giants like alphabetthe parent company of Google, and Microsoftthey would present their results this Tuesday.
The euro registered a fall of 0.15%, trading at u$s1,104.55 dollars, which represented a decrease 2% of the maximum of 17 months reached a week earlier, which had been US$1,128.
Economic indicators for Monday they had already been discouraging for the eurozone, and Tuesday was no different. A survey of the ECB revealed that demand for loans had reached a record low in the second quarter, while other data showed a deterioration in business confidence in Germany this month. Nomura analysts noted that tightening credit conditions could be starting to have an impact, and this would be being closely watched by the ECBas it would indicate that the rate hikes are having an effect.
On the other hand, the chinese yuan shows strength, advancing to 7.1455 units per dollar in international operations and 7,147 in national operations. Chinese stocks, especially real estate, are also seeing gains.
As for the japanese yenwas under pressure, trading at 141.40 units per dollarstruggling to recover from heavy losses on Friday, caused by a Reuters report that the BoJ was leaning to keep its yield control policy unchanged at its next policy meeting.
Back in Europe, the pound sterling holds one slight improvement of 0.12%reaching the $1.2840. This rally came after seven straight losing sessions, marking its longest losing streak since March 2020. Meanwhile, the Swiss franc remains stable in 0.8692 units per dollar.
In short, the markets were being influenced by a combination of factorsincluding the decisionsand monetary policy of the main central banks, the results of important companies and the economic data of both Europe as China. Investors remained alert and cautious in the face of uncertainty surrounding the global economy.
Source: Ambito
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