EURUSD, GBPUSD Waiting for the FOMC Meeting

Looking at the EURUSD on the four-hour time frame, we see that the pair further consolidate in the zone 1.17500-1.18000. For the bullish scenario, we need a stronger break above 1.18200. There we would get support in the moving averages MA20 and MA50. Our target then is the MA200 in the zone 1.18800-1.19000. For the bearish scenario, we currently break below 1.17500 large support zones. A break below that support zone leads us to 1.17000.

Lee Sue Ann, an economist at UOB Group, gave her an overview of the latest ECB event. What was supposed to be a July monetary policy meeting that did not occur at the European Central Bank became a key point in focus this week after the announcement of the strategic revision, where the Governing Council agreed with a constant inflation target of two percent in the medium term. As expected, the ECB is 22. July revised its future guidelines on interest rates, taking a more dovish stance.

The Steering Board also reaffirmed its other measures to support its price stability mandate: the level of key interest rates, purchases under the asset purchase program (APP), re-investment policies, and long-term refinancing operations.

The latest decision reinforces our view that the ECB will need to remain highly adaptable for some time due to the subdued economic activity held by the services and the long-term challenges associated with the COVID-19 pandemic, which is currently not over. The ECB’s ECB’s dovish bias suggests that the overall reduction in monthly purchases in 2022 will be less than previously expected. This dispels any speculation about reducing the measures.”

The EU

The European Union is on track to achieve the goal of completely vaccinating at least 70% of the adult population by the end of the summer. This is given that the percentage of 18 and older received the first dose, the European Commission said on Tuesday.

European Commissioner for Health Stella Kiriakides said that the block reached an important turning point when 70% of adults received the first dose. Moreover, 57% were fully vaccinated. Projections have shown that the EU will achieve its goal by the end of the summer, she said in a statement.

The EU vaccine campaign has started slowly in relation to Britain and the United States due to delays in delivering vaccine doses. Especially those from AstraZeneca, against which it has initiated legal proceedings. However, after a sharp increase in stocks from the second quarter, especially the Pfizer-BioNTech vaccine, European Commission President Ursula von der Leyen said that the EU is now among the world leaders. “The catching-up process has been very successful – but we must continue our efforts,” she said. Continuing as follows: yes, The delta variant is very dangerous. Therefore, I call on everyone – who has the opportunity – to get vaccinated for their health and the protection of others.

The GBPUSD Chart analysis

Looking at the GBPUSD chart on the four-hour time frame, we see that the pound has been gaining against the dollar in the last week. We also received support in the moving averages MA20 and MA50. Further growth can be expected up to zone 1.38000-1.38500. Above, we have resistance in the form of a downward trend line. Tomorrow we will receive a report from the FOMC on possible changes in interest rates. They will definitely affect and determine the further direction of this pair. We can expect another drop and a new test of 1.35,000 psychological support if the dollar gains strength.

British traders reported only a slight slowdown in July after sales growth peaked in nearly three years in June. The first entire month after insignificant stores reopened after the coronavirus was shut down, industry data showed on Tuesday.

Confederation of British Industry

The measure of sales volume of the Confederation of British Industry, compared to the year before, dropped to +23 from +25 in June. This was the highest since August 2018.

The CBI said that the growth of orders was the fastest since December 2010. Moreover, the pace of sales is expected to increase again in August.

However, sales became recorded in line with the usual levels for the time of year. This excludes the locking effect of the British coronavirus.

CBI economist Ben Jones said that consumer demand supports the British economic recovery. Although clothing and footwear stores, in particular, have not yet seen a recovery in demand.

The relative level of inventory is at a record low. Forecasts show a continued fall. While for many companies, labor shortages in the supply chain about the self-isolation of staff are at the moment.

The Bank of England is monitoring how much the British are spending on the savings that the British collected during the lockout. This could be a key driver of the country’s recovery from the COVID-19 pandemic.