The Euro is looking up. Overview for 31.07.2019

The major currency pair is pretty confident despite weak numbers from the Euro Area and anticipation of the US Federal Reserve meeting results. 

On Wednesday morning, EURUSD is keeping its momentum, although there isn’t too much buying. The current quote for the instrument is 1.1150.

The CB Consumer Confidence report published yesterday showed improvement up to 135.7 points in July after being 124.3 points in June and against the expected reading of 125.1 points. The components of the report are quite optimistic: the Present Situation Index increased up to 170.9 points, while the Expectations Index – up to 112.2 points. 

The fact of the indicator recovery this month after it fell in June is very positive. It looks like consumers are really confident in their assessments of the current business environment and the situation on the labor market. 

The Personal Income added 0.4% m/m in June, while the Personal Spending expanded by 0.3% m/m, just as expected.

The highlight of today is the key event of the month or maybe even the quarter – the US Federal Reserve meeting, which may increase the market volatility later in the evening. The thing that intrigues market players the most is what the FOMC is going to do next, because CME of the rate cut during today’s meeting is 100%. If the regulator doesn’t hint at further rate cut in September, the USD may grow a little bit. However, if the Fed says that external conditions require to loosen the monetary policy, the American currency is very likely to fall.