CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money 
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money 

Daily summary: JPY rallies on BoJ hike, Powell hints at possible September cut

10:01 pm 31 July 2024

  • FOMC left interest rates unchanged in the 5.25-5.50% range, in-line with market expectations. Market reaction to the announcement was muted with USD slightly gaining, while gold moved lower
  • FOMC statement showed that Fed still seeks greater confidence in inflation returning to target before cutting rates and that it is now highly attentive to risk to both sides of dual mandate, rather than only to inflation risks as was the case in June statement
  • Fed Chair Powell sounded slightly dovish during the press conference saying that September rate cut is on the table, but stressed that decision will depend on how economy evolves
  • Wall Street indices trade higher - S&P 500 gains 2%, Nasdaq rallies 3%, Dow Jones adds 1.1% and small-cap Russell 2000 trades almost 2.5% higher
  • Microsoft dropped around 1% after reporting slightly weaker than expected cloud revenue in fiscal-Q4 2024 (calendar Q2 2024)
  • Advanced Micro Devices launched today's trading over 8% higher after reporting better than expected Q2 2024 results. However, the majority of this gain was erased during the cash session
  • The next batch of US Big Tech earnings will be released today after market close, with reports from Meta Platforms, ARM Holdings and Qualcomm being scheduled for release
  • European stock market indices traded higher today - German DAX gained 0.5%, UK FTSE 100 jumped over 1.1%, French CAC40 moved almost 0.8% higher, while Dutch AEX rallied 1.4%
  • JPY is the best performing G10 currency today, after Bank of Japan delivered a 15 basis point rate hike. Decision can be seen as a surprise as economists were split over whether BoJ will hike rates or keep them unchanged
  • USDJPY dropped below 150.00 mark today for the first time since mid-March 2024
  • ADP employment report showed a 122k increase in employment in July (exp. 150k)
  • Canadian monthly GDP report for May showed a 0.2% MoM expansion (exp. 0.1% MoM)
  • Euro area flash CPI inflation report for July showed headline CPI accelerating from 2.5% to 2.6% YoY (exp. 2.5% YoY), while core CPI remained unchanged at 2.9% YoY (exp. 2.8% YoY)
  • Oil prices moved higher after Ismail Haniyeh, chief of Hamas political wing, was assassinated in Teheran, Iran. While Israel did not take responsibility for the attack, the country was blamed as perpetrator by Iranian authorities, who vowed to retaliate
  • DOE report showed a 3.44 million barrel drop in US oil inventories (exp. -2.3 mb), a 3.66 million barrel declines in gasoline inventories (exp. -1.5 mb) and a 1.53 million barrel build in distillate inventories (exp. -1.5 mb)
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The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.

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