All eyes on the release of the U.S. FOMC minutes

All eyes on the release of the U.S. FOMC minutes

07.07.2021

Yesterday, stock prices fell in both European and U.S. markets, leading to a risk-off environment characterized by falling stock prices, lower interest rates, and a weaker U.S. dollar. Germany’s July ZEW Economic Sentiment Index, released yesterday, came in at 63.3 against a forecast of 75.2; however, it remains at a high level and did not indicate an economic recession. Gold rose to the 38.2% Fibonacci retracement level on the daily chart but then pulled back, and is currently trading around $1,800.

In the foreign exchange market, Oceania currencies are trading weakly. In particular, the AUD/USD pair, following yesterday’s announcement by the RBA (Reserve Bank of Australia) that it would keep interest rates unchanged, fell by about 100 pips shortly after the announcement and is currently trading around 0.749.The RBA announced that it would "begin tapering quantitative easing in September, reducing government bond purchases from A$5 billion to A$4 billion per week," thereby signaling a gradual exit from its monetary easing measures.

Today, during Asian trading hours, German industrial production will be released at 15:00, followed by the Frenchtrade balance and current account balance at 15:45, UK Halifax house prices at 16:30 during European trading hours, the US MBA mortgage applications index at 20:00, the Canadian Ivey PMI and US JOLTS survey at 23:00 during US trading hours, the release of the June FOMC minutes at 27:00, and remarks by Bostic, President of the Atlanta Fed, at 28:30.Ahead of today’s release of the U.S. FOMC minutes, I intend to wait and see how currency strength and weakness evolve.

Past Market Reports

1. 20.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 13.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

7. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

9. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 07.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran