Talking Points:
- Tomorrow brings the ECB’s July rate decision, and the following week brings the Bank of Japan (Tuesday morning in Asia, Monday night in Europe, the UK and the US), the FOMC[1] and the Bank of England’s ‘Super Thursday’ rate decisions.
- So far in Q3 many FX markets have been mired in varying forms of congestion after big moves played-out in Q2. With a series of high-impact drivers on the radar over the next week, we might finally see some of those prior trending themes come back in the spotlight. Of particular interest is whether the Euro[2] continues its descent, which could keep the door open for bullish strategies in the USD[3].
- DailyFX Forecasts on a variety of currencies such as the US Dollar[4] or the Euro[5] are available from the DailyFX Trading Guides page[6]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[7]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[8].
Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment Indicator[9].
Q3 Digestion Continues Ahead of ECB
The US Dollar continues to move in a rather direction-less manner[10], and this means many major currency pairs are set up the same. This has been a Q3 theme that has yet to find resolution as prices have built deeper into digestion or congestion formations for much of the new quarter. That may not last for too much
