The dollar index settled in transactions of today, Monday, 25.7.222 at the level of 106.64 points, with a slight increase of 0.02 percent. The markets awaiting the Federal Reserve’s decision.
The US interest rate decision will be released at 7 pm GMT on Wednesday 27.7.2022. Economists expect the Federal Reserve to raise interest rates by 75 points, it will reach to 2.50%.
The US consumer price index rose in June on an annual basis to the highest level in 40 years. In addition to the decline in the Purchasing Managers’ Index in the services sector last Friday, which corresponded to 22.7.2022. This indicates that the US economy is slowing down.
Last week, Mr. James Bullard and Mr. Christopher Waller, hard-line Fed members, spoke. They were saying that raising interest rates by 75 points is the preferred option. In addition to their indication that raising interest rates by 100 basis points would be an option off the table for the Fed.
The US dollar fell after Waller and Bullard’s speech from its highest level in 20 years, and settled below the level of 107.0 points, and is now trading at 106.64.
US GDP figures for the second quarter of 2022 will be released, and expectations are for a gain of 0.4%, which is better than it was in the first quarter after the US economy contracted by 1.6% due to supply chain disruptions.
In the European trading sessions, the German IFO Business Climate Index in July is expected to fall to 83.0. It is lower than the previous month at 85.8. Confidence in the German economy has fallen for several months, and there is no evidence of improvement in the economy, and this is due to the Russian gas cut.
In the UK, industrial orders are expected to decline again to 13th from 18th in June. The British economy faces major challenges, but not like Europe.