Global Market Snapshot 29th July 2024

This week, the forex market has been highly volatile, with major currency pairs showing different trends influenced by economic data and global events. The US dollar demonstrated some resilience after the release of the Personal Consumption Expenditures (PCE) data. Although market expectations for a rate cut by the Federal Reserve in September have diminished, the extent of the rate cut has already been fully priced in. Meanwhile, the Japanese Yen, British Pound, Euro, and Canadian Dollar are each facing the impact of various economic data and events.

USDJPY fell 18 pips to 153.75. The yen performed strongly this month, reaching a nearly three-month high at one point. However, with the possible policy adjustments by the Bank of Japan, the yen’s upward momentum has stalled. The potential policy changes by the Bank of Japan and market expectations for a rate hike by the Bank of Japan will have a significant impact on the yen.

GBPUSD jumped 20 pips to 1.2881. The pound has been relatively stable this week. Although it has risen against the dollar, it remains well below last week’s one-year high. The Bank of England’s meeting next week is the market’s focus, with expectations of a total rate cut of 51 basis points this year.

EURUSD rose 12 pips to 1.0856. The euro has slightly increased against the dollar this week, but overall volatility has been minimal. Economic data and policy changes in the eurozone have had a relatively small impact on the euro, with the market focusing more on the movements of the dollar and other major currencies.

CAD has been weak this week, declining against most major currencies, particularly against the US dollar. The Bank of Canada cut interest rates this week, and the market anticipates further rate cuts this year, which may limit the upward potential of the Canadian dollar.

BTC Over the weekend, presidential candidate Donald Trump promised at the Bitcoin 2024 conference to retain all Bitcoin currently held or acquired in the future by the US government. The price of Bitcoin has already surpassed $69,500 and is poised to break the $70,000 mark.