Trading Insights: Fed keeps the bulls running, ECB up next

Market Talk:

If you're reading this you most likely heard that the US FED increased the US Fed funds interest rate yesterday.

Quick summary:

• US Fed Chairman Powell did say that current policy has not been restrictive enough eg. the door is open for further interest rate hikes
• The FOMC upgraded its view on the economic growth of the US economy

Bottom line: The better economic growth outlook implies that the US economy can handle higher interest rates.

The Bulls are in a strong position…..

Dowjones 30 five day price action

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Today’s economic calendar

European Central Bank (ECB) expected to hike +0.25%

• It's expected to raise +0.25%
• Current interest rate 4%
• Expected new rate 4.25%

Assets to watch: EUR/USD, Germany 40, Spain 35, EU50, CAC40

Source: TradingView / J. Knobel July 26 2023 6:38 AM UTC

ECB Interest rate decision on deck today at 12:15 PM UTC

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Today’s Price Action Spotlight:

EUR/USD current price 1.1124, strong support spotted near the 1.0940s, watch the 1.1275 bull trigger

Germany 40 current price €16,263, price remains above its 40 day moving average, upside extension towards €16,790s, downside risk seen below the €14,684 support (see chart).

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