The Federal Reserve yesterday refrained from signalling any imminent tapering of bond buying following the policy decision and statement also characterising inflation as transitory (again). This suggests more patience from the central bank will be taken on any sudden change in policy. Printing Dollars for longer saw stocks/indices trend higher, the Dollar ending lower across the board as the US Dollar broad based index hit two-week lows. Annualised GDP numbers are released at 1.30pm, as are jobless claims & pending home sales.

Upon breaking key resistance against the Dollar ($1.3900), buyers returned, opening at the overnight highs. Against the Euro, Sterling is relatively unchanged this morning having held the 1.1750 level in Asia. Nevertheless, with the fall in covid infections during the last week, Sterling performs well although the government and scientists remain cautious about declaring any turning point in the pandemic. Consumer credit and mortgage approvals for July are released at 9.30am.

Following the Fed news, the Euro eventually rallied, now opening above key resistance of $1.1850. A weekly close above here is technically positive for the common currency in this weaker US Dollar environment. Data due today: Eurozone consumer confidence for July (10.00am), German inflation (CPI) for July (1.00pm).