The Australian dollar is down for a third straight trading day. In the North American session, the US dollar has posted gains against most of the major currencies, including the Aussie. The greenback received a boost after the US and the EU reached a framework trade agreement after protracted negotiations.
The data calendar is bare on Monday, with no events out of the US or Australia. Things get very busy on Wednesday, with Australian inflation, US GDP and the Federal Reserve rate decision.
Even with no US releases, the US dollar has posted gains against most of the major currencies, including the Aussie. The greenback received a boost after the US and the EU reached a framework trade agreement after protracted negotiations.
President Trump had threatened to impose 30% tariffs on European goods if a deal was not reached by Aug. 1. With the deal, a nasty trade war between the world's two largest economies has been avoided and the US will tariff most EU products at 15%.
The deal with the EU comes on the heels of a similar agreement with Japan, bringing a sigh of relief from the financial markets that have been worried about the economic fallout from Trump's tariff policy. The agreements remove a great deal of uncertainty and investors are hopeful that the US and Chinese negotiators will wrap up their talks with an agreement in hand.
The Federal Reserve meets on Wednesday and is virtually certain to maintain interest rates for a fifth straight meeting. It will be interesting to see if President Trump, who has been sharply critical of Fed policy, reacts to the decision. The money markets are expecting at least one cut before the end of the year, with the money markets pricing in a 61% likelihood a cut in September, according to FedWatch's CME.
The data calendar is bare on Monday, with no events out of the US or Australia. Things get very busy on Wednesday, with Australian inflation, US GDP and the Federal Reserve rate decision.
Even with no US releases, the US dollar has posted gains against most of the major currencies, including the Aussie. The greenback received a boost after the US and the EU reached a framework trade agreement after protracted negotiations.
President Trump had threatened to impose 30% tariffs on European goods if a deal was not reached by Aug. 1. With the deal, a nasty trade war between the world's two largest economies has been avoided and the US will tariff most EU products at 15%.
The deal with the EU comes on the heels of a similar agreement with Japan, bringing a sigh of relief from the financial markets that have been worried about the economic fallout from Trump's tariff policy. The agreements remove a great deal of uncertainty and investors are hopeful that the US and Chinese negotiators will wrap up their talks with an agreement in hand.
The Federal Reserve meets on Wednesday and is virtually certain to maintain interest rates for a fifth straight meeting. It will be interesting to see if President Trump, who has been sharply critical of Fed policy, reacts to the decision. The money markets are expecting at least one cut before the end of the year, with the money markets pricing in a 61% likelihood a cut in September, according to FedWatch's CME.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.