Forex News Roundup for 31st July, 2023

• • The US Dollar is still rising despite a long-term bearish trend but it would be tough for the price to cross the key resistance at 101.56 which makes the uptrend look like a short-term situation at the moment. The Swiss Franc has turned out to be the weakest currency since the weekly open while the Australian Dollar has been the best-performing major currency in the forex market.
  • Commerzbank economists recently stated their views on the impact of ECB decisions that are converging with that of the Fed. The central bankers in Europe are imitating their American counterparts’ actions but equal or similar monetary policies have varied results in various situations. It doesn’t mean that the EUR/USD will lose momentum if the ECB more or less adopts the Fed’s monetary policy. Because it is a fact that 2 different economies behave differently to similar monetary policies, depending on the situation and aspects like inflation or growth will influence the final outcome.
  • Japan’s Economy Minister Shigeyuki Goto stated in an interview with Reuters on Tuesday that “BoJ’s Friday decision was meant to increase the sustainability of monetary easing by making YCC more flexible.” Goto commented that he “does not think the Bank of Japan’s decision on Friday was a shift in monetary easing stance.” His remarks follow those made on Monday by a senior member of the ruling Liberal Democratic Party (LDP) in Japan, who said that “the Bank of Japan’s (BoJ) policy tweak sends a message to exit from easing finally.”
  • Bitcoin is currently stuck around $30,000 as the CEO of Coinbase talks about the SEC’s request prior to the lawsuit. According to a recent Financial Times story, the Securities and Exchange Commission (SEC) of the United States urged Coinbase to stop trading all cryptocurrencies other than Bitcoin one month before giving legal notice.
  • Energy prices are rising, with WTI Crude Oil futures reaching nearly a fresh 3-month high once more on Friday due to signs of a supply shortage. This might attract the attention of trend traders since it can give rise to good trading opportunities. Having reached a multi-year high price last Thursday, cocoa futures on the commodities market will remain attractive to trend traders as opening a long position appears to be ideal at the moment.
  • The Reserve Bank of Australia will have a policy meeting and is anticipated to follow the footsteps of the US Federal Reserve and the European Central Bank by increasing its Cash Rate by 0.25%.