The Most Popular Stock Indices

  

 

A stock market index measures one particular section of the stock market. This section includes companies from all the different sectors. This index represents the stock market. When the share prices of all the companies are increasing, the stock index also increases and vice versa.

The stock market index is determined using the weighted average price of selected securities. The most popular stock market indices are S&P 500, Dow Jones Industrial Average, Nasdaq, etc.

An index in the stock market can be classified in different ways. There are global or world stock market indexes that contain stocks from multiple regions. Such regions are defined geographically, such as the Asia region, European region. These indexes can also be defined on the basis of industrialization. In this blog get to know everything about what an index is in trading.

Importance of Stock Market Indices

The basic purpose of a stock index is to make trading easy for investors. Without a stock market index, you will have no investment categories. It will be just an open marketplace where the stocks are just listed and available for trade.

You will never be able to assess which stock has higher market capitalization and which has high performance. An index makes it easier to assess performance based on certain criteria. This helps the investors to group securities together in one fashion.

#1. Stock Market Index as Benchmark of Performance

A stock market index measures the performance of the stock market of one particular country and thereby reflects the investor sentiments of that one region. National indices include stock prices of some large companies listed on the stock exchange of that particular country. The daily results of the stock market index are one most significant numbers used by investors in the world of finance to make decisions.

Investors use these stock market indexes to manage their investment portfolios. These numbers and results are used by portfolio managers to manage funds of the investors and then use them as a benchmark for comparison with different investment options.

#2. Stock Market Index for Grouping and Sorting

A stock market index makes it possible to group all the stocks together in an organized fashion and sort them using a particular strategy. This makes it easier to see all the best-performing stocks in one single place.

Stock market indices make it easier to group a particular sector together. In absence of indices, investors will have to individually hunt for securities, group them together and do their own math to understand how a sector is performing.

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Why You Should Invest Money in Indices?

 

 

Index funds are specifically designed to match the investment results of one particular market index. This fund includes stocks or bonds in its portfolio and the returns that they achieve are in line with a particular index. Index funds are most popular among investors as they help you to attain ownership of a wide variety of stocks. They will also help you to diversify your portfolio and at the same time minimize risk.

This is the reason you should get good index signals in order to understand the entry and exit strategies. You can also get good index signals to understand how the market will move. This will help you to get a diversified selection of securities in one easy and low-cost investment option. Through this, you get access to thousands of securities in a single fund.

Following are some of the advantages of index funds that will help you to understand why you should invest money in indices.

#1. Low Risk

One main advantage of index funds is that they are low-risk options for the investors who are willing to invest in the stock market. These funds are inherently diversified and help you to gain shareholding in some major sectors of the economy. As the index increases your return on index funds will also increase. You also get an option to make a basket of securities as per your own proportion. So you can avoid the stocks that you think are riskier. This is what makes index funds less riskier as compared to investing directly in the stock market.

#2. Steady Growth

Index funds are relatively low-risk options for investing and are designed for long-term and steady growth. They have a diversified portfolio of securities and will grow with the growth in overall industries. This makes them a good option for long-term investors who are looking for steady growth and low risk at the same time. Indices trading signals will help you to gain knowledge of the index market and when to enter the same for maximum returns.

#3. Low Management Fees

One major reason that makes index funds even more attractive to investors is the low management fees of these funds. As these funds are passively managed, they have low management fees as compared to other funds available in the market. Investors can easily trade index funds by simply getting good index tips. This will not only help you to diversify your portfolio but will also help you to earn good returns in the market.

#4. Tax Benefits

They have a huge tax benefit for the investors as you are investing in a lot of securities. There can be hundreds of sureties in a lot at the time of investment and you also have hundreds of lots to choose at the time of selling the stocks. This means that you can sell stocks in lots with the lowest possible tax.

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Let's have an look on DAX

#DAX #ANALYSIS

 Yesterday was more of the same, a very narrow day and still without leaving this horrible side.  Today there is the expiration of options and futures to see if with it the DAX begins to move well somewhere.  As for data, today there is only a Consumer Sentiment Index from the University of Michigan in the USA.

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Why You Should Invest Money in Indices?

 

 

Index funds are specifically designed to match the investment results of one particular market index. This fund includes stocks or bonds in its portfolio and the returns that they achieve are in line with a particular index. Index funds are most popular among investors as they help you to attain ownership of a wide variety of stocks. They will also help you to diversify your portfolio and at the same time minimize risk.

This is the reason you should get good index signals in order to understand the entry and exit strategies. You can also get good index signals to understand how the market will move. This will help you to get a diversified selection of securities in one easy and low-cost investment option. Through this, you get access to thousands of securities in a single fund.

Following are some of the advantages of index funds that will help you to understand why you should invest money in indices.

#1. Low Risk

One main advantage of index funds is that they are low-risk options for the investors who are willing to invest in the stock market. These funds are inherently diversified and help you to gain shareholding in some major sectors of the economy. As the index increases your return on index funds will also increase. You also get an option to make a basket of securities as per your own proportion. So you can avoid the stocks that you think are riskier. This is what makes index funds less riskier as compared to investing directly in the stock market.

#2. Steady Growth

Index funds are relatively low-risk options for investing and are designed for long-term and steady growth. They have a diversified portfolio of securities and will grow with the growth in overall industries. This makes them a good option for long-term investors who are looking for steady growth and low risk at the same time. Indices trading signals will help you to gain knowledge of the index market and when to enter the same for maximum returns.

#3. Low Management Fees

One major reason that makes index funds even more attractive to investors is the low management fees of these funds. As these funds are passively managed, they have low management fees as compared to other funds available in the market. Investors can easily trade index funds by simply getting good index tips. This will not only help you to diversify your portfolio but will also help you to earn good returns in the market.

#4. Tax Benefits

They have a huge tax benefit for the investors as you are investing in a lot of securities. There can be hundreds of sureties in a lot at the time of investment and you also have hundreds of lots to choose at the time of selling the stocks. This means that you can sell stocks in lots with the lowest possible tax.

Check out the news that happened in the last 24 hours

 1️⃣ Yesterday's main news

 The Fed is expected to consider ending bond purchases by mid-2022.

 The Dow and S&P 500 continue to hit record highs.

 - According to the news that OPEC + has no intention to increase production, oil prices recover in the short term.

 - Japan increased its US debt holdings in June and China's debt holdings fell the most in 5 years.

 - The US government has begun a formal investigation into Tesla's autonomous driving system.

 - National Standing Committee: Finalize and implement a plan to cope with the increase in prices of important raw materials.

 2️⃣ Financial facts and data today

 - Today the Reserve Bank of Australia released the minutes of its August monetary policy meeting.

 - In the afternoon, the UK and the Eurozone will announce unemployment rates for the 7th consecutive month and be on the lookout for fluctuations in the pound and the euro.

 - the percentage of monthly retail sales for July in the United States, known as "terror data", will be released.  Expected value is -0.2%, lower than previous value of 0.6%.

 - The World Economic Forum held its special 2021 annual meeting today, until August 20.

 - the next day, Fed Chair Powell joined the videoconference.

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Check out the news that happened in the last 24 hours

 

 1️⃣ Yesterday's main news

 - US monthly core CPI rate in July fell short of expectations

 - Fed Barking: It may take months to meet debt relief standards

 - Fed reverse repo usage exceeds $1 trillion again in two weeks

 - U.S. EIA crude oil inventories fell by 448,000 barrels last week

 - White House: Not asking US oil producers to increase production

 - US Senate approves $3.5 trillion budget plan

 - Nearly all Republicans in the US Senate warn against raising the debt ceiling

 - European investors invested nearly $1 billion in gold ETFs in July

 2️⃣ Financial facts and data today

 - Two monthly crude oil reports will be released on Thursday, the IEA monthly report and the OPEC monthly report.  Investors can observe the latest supply and demand situation in the crude oil market.

 - initial jobless claims from the United States through August 7 will be released, the expected value is 375,000, and the previous value is 385,000.  If the number of initial applicants continues to decline, it will further test the optimistic expectations of the US labor market.

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Check out the news happening in the last 24 hours

  1️⃣ Yesterday's main news

 - Fed Bostic: Or start reducing debt from October to December.

 - Democrats in the US Senate announce a $3.5 trillion budget plan.

 - The provisions of crypto tax under the US Infrastructure Act have not been agreed.

 - US Treasury Secretary Yellen seeks bipartisan cooperation to resolve debt ceiling issue.

 - New York Fed survey: US consumers' short-term inflation expectations maintain record highs.

 - For the first time, JOLTS US employment exceeded 10 million people, exceeding the number of unemployed people.

 - Japan may increase its economic stimulus plan

 2️⃣ Financial facts and data today

 - the August ZEW Economic Sentiment Index for Germany and the Eurozone will be published.

 - the July US NFIB Small Business Confidence Index will be released, with the expected value of 102 and the previous value of 102.5.

 - 2022, the FOMC voting committee and Federal Reserve chair Cleveland Meester will deliver speeches on inflation risks.

 - EIA will release its monthly short-term energy outlook report.

 - the next day, API crude oil inventories will be released for the week from the US to August 6.

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Today Top Forex News by Money Life Research

  1️⃣ Yesterday's main news

 - Fed Daley: Either cut debt purchases later this year or early next year.

 - US bipartisan infrastructure bill will "suck" about $23 billion from crypto assets.

 - Initial jobless claims in the US recorded 385,000 last week.

 - Biden sets new energy vehicle sales to account for 50% of all new car sales by 2030.

 - World Gold Council: The global gold ETF in July currently has a small net inflow.

 - Bank of England: Continue to maintain current monetary policy and implement appropriate tightening measures if necessary.

 The FDA is developing a plan to boost the Covid19 vaccine.

 2️⃣ Financial facts and data today

 - the Reserve Bank of Australia issued a statement on monetary policy.

 - the US unemployment rate for July is expected to be 5.7% and the previous value is 5.9%;  Nonfarm employment population in the United States after seasonal adjustment in July, the expected value is an increase of 870,000, and the previous value is an increase of 850,000.  The nonfarm report could point to the direction of the Taper debate ahead of the Fed's rate decision in September.

 - the monthly US wholesale rate for June, both expected value and previous value is 0.8%.

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Check out the news that happened in the last 24 hours

  1️⃣ Yesterday's main news

 - "Small Non-Farming" hits new low since February.

 Fed Brad: Should end bond purchases in the first quarter of 2022.

 - Fed Vice Chair Clarida: Fed will announce debt relief later this year.

 - Crude oil inventories at the US EIA unexpectedly increased sharply last week.

 - The US Treasury Department will cut the issuance of Treasury bonds with interest rates as early as November.

 - Saudi Arabia raised official prices for all oils in September.

 - US Senator Warren praises Brainard for attacking Powell.

 - The U.S. Senator has filed amendments to the Cryptocurrency tax provisions of the Infrastructure Act.

 2️⃣ Today's Financial Facts and Data

 - the Bank of England will announce its decision on interest rates and the market generally expects the bank to maintain its dovish stance.  Since the Bank of England's policy meeting this week will not provide policy guidance, the Bank of America does not expect the Bank of England to send any clear signals.  Market attention will turn to the number of committee members who voted to end QE early.  The Monetary Policy Committee is expected to vote 6-2 in favor of maintaining the current bond-buying plan.  However, some bank officials have recently suggested that monetary policy could be tightened sooner than expected, raising the possibility of an unexpected end to UK government bond purchases.

 - the number of initial jobless claims from the United States through July 31 is expected to increase by 384,000, with the previous value increasing by 400,000.

 - Fed Governor Waller gave a speech on central bank digital currency.

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US dollar hits three-month high on safe-haven buying

 

 The US dollar rallied to a three-month high in safe-haven buying on Tuesday, and investors remained right.  The rapidly spreading variant virus is causing concern because it could stifle global economic growth.

 Commodity currencies that are associated with risk appetite, such as the Australian dollar and New Zealand dollar, have experienced tough trends.  As worries about the highly contagious variant of the Delta virus flare up again, investors will choose to hedge or stay out.  Delta virus is currently the main novel coronavirus in the world.

 The number of infections in the United States has risen sharply, especially in areas where vaccinations are lagging.  The US dollar rose and US Treasury yields fell.  The 10-year US Treasury yield fell to a five-month low below 1.20% on Monday, as markets once again cast doubt on the economy's strong recovery from the outbreak.

 “The shift in relative growth expectations is weakening capital outflows from the United States and increasing the attractiveness of investments,” said Karl Schamotta, chief market strategist at Cambridge Global Payments.  in dollars.."

 “I think the dollar’s ​​safe-haven strength is justified, because global economic growth is weak and not as strong as it was in the quarter,” said Juan Perez, forex strategist and trader at Tempus Inc.  first, so all valuations and economic growth are now called into question in terms of high expectations, that's true"

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The Federal Reserve eased stimulus concerns: Market News

 The market's pulse

Let's take a closer look at how these and other important events affect currency prices: 

Currencies

MARKET VIEW

Weekly changes: EURUSD -0.46%, GBPUSD -0.88%, USDJPY -0.19%, NZDUSD -0.14%

The EURUSD pair closed the week at 1.18036. Earlier that week, the price declined and tested 1.1770. The ECB will declare its monetary policy strategy this Thursday.

GBPUSD fell to 1.37613, near its multi-month low of 1.37300. Yesterday U.K. reported the most significant one-day COVID cases spread since the start of the year. Meanwhile, the BoE officials talked about reducing their asset purchase programme, but it looks like words will remain only words for now.

USDJPY finished Friday at 110.053, almost unchanged for the week. The Bank of Japan surprised no one with its inaction. Governor Haruhiko Kuroda said nothing we didn’t already know, i.e. that the Japanese economy remains in a bad state, but activity will be picking up amid vaccine progress.

The hefty inflation lifted the New Zealand dollar. The market now considers the RBNZ to be the first major central bank to raise the rate next month. Although the greenback was that firm, it erased the local currency from the current range, so the NZDUSD pair closed Friday below 0.70000 with minor weekly changes.

BULLISH TRIGGERS

The ECB will hold a meeting, and it probably will move the markets because of its hawkish tone of voice.

The BoE released relatively hawkish comments from its official last week about reducing the asset purchase programme sooner than anticipated. This Monday, the country will end all legal COVID restrictions. The BoE concluded its meeting but hasn't changed any policy settings.

BEARISH TRIGGERS

If the ECB meeting results are as non-eventful as were previous ones, the EURUSD will be under pressure. The regulator may delay announcing its hawkish steps till publishing the new summer data.

In the U.K., the focus remains on recent COVID developments in the absence of meaningful events. The Japanese currency was damaged by the BoJ decision of downgrading economic forecasts.
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Check out the news that happened in the last 24 hours

  1️⃣ Yesterday's main news

 - The re-emergence of the epidemic caused panic, European and American stock markets plunged, crude oil plummeted.

 Biden: If the trend of high inflation continues, the US economy could face serious complications.

 - US Treasury Secretary Yellen convenes US regulators to discuss stablecoin rules.

 - Iran's Foreign Ministry: The next round of talks in Vienna will be held after the formation of a new Iranian government.

 - The size of ESG investment fund exceeds 160 billion, maximum profit of 290% in three years.

 - Members of the two Banks of England believe that austerity policies should not be premature.

 2️⃣ Today's Financial Facts and Data

 - The listed interest rate of the one-year loan market from China to July 20 will be announced.

 - The Reserve Bank of Australia will release the minutes of its July monetary policy meeting.

 - The Eurozone current account will be published after the May seasonal adjustment.

 - The price of NYMEX New York crude oil for August futures is affected by the position change.  The last transaction on the exchange will be completed at on July 21, and the last transaction on the exchange will be completed. Also, the expiration times of some US oil contracts on some exchanges are usually a day earlier than the official NYMEX, so pay extra attention.

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Today's Update On DAX Analysis

 ℹ️ #DAX #ANALYSIS

The DAX comes out of the side in which it was immersed, but it is still inside a larger one.  Yesterday he held on to the lows of the month with the help of the USA when he was having a strong panic.  Now we will see if he continues to bounce or falls again to retest the lows for the month.

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Monthly Overview on Oil

 Monthly change: XBRUSD +9.62%

Oil rose over 9% and exceeded 75.64 USD in June. XBRUSD recorded a seven-month gain in the past eight months. A firmer U.S.dollar makes XBRUSD more expensive in other currencies, potentially weighing on demand. However, neither the greenback nor the third COVID wave threat could hold oil from a surprise rally.

OPEC+ meeting took place at the beginning of June. The organisation noted the ongoing strength of market fundamentals as the economic recovery in most parts of the world continued. Since then, the oil headed for monthly gains, and OPEC+ called the market undersupplied. The next meeting will take place in July. The group will discuss extending its deal on cutting oil supply beyond April 2022.

Last October, eight months ago, Reuters questioned analysts on their oil price forecasts. None of the present economists predicted an extended rally or a doubling in oil prices within that period. However, both events happened. This month's projections were more accurate in predicting a further rally limited by OPEC decisions and the potential U.S. and Iran deal.

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Monthly Overview on Cryptocurrencies by Money Life Research

 Monthly change: BTCUSD -7.93%

Bitcoin's historical price records

Bitcoin traded at 34,000 USD by the end of the month, as the investors preferred to take profits. During June, the crypto fluctuated mostly within the 30,000-40,000 USD price range. However, by the middle of the month, the market witnessed a specific bearish technical signal called 'death cross'. The previous movements of this signal resulted in further price declines in 2018-2020.

Blockchain analytics explain the shortage of institutional investors as the reason for the current cryptocurrency price level. Now it remains almost half of April's all-time high. The open positions in bitcoin futures fell by 59% from the April peak, as investors remain cautious. Regulatory crackdowns and concerns about tighter monetary policy caused all recent sell-offs. All this happens in the wake of a slowdown in institutional demand and thinner liquidity.

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Check out the news that happened over the weekend

 1️⃣ The main news last weekend

 Nonfarm payrolls in the United States in June posted its biggest growth in 10 months, and the unemployment rate rose slightly to 5.9%.  Employment data lowers Fed expectations and US certificates hit record levels.

 - US trade deficit widened to second highest on record in May, imports grew faster than exports.

 - The OPEC+ ministerial meeting was still unsuccessful to reach an agreement last Friday, because the UAE is still responding to the proposal to increase production, the talks will continue on Monday.

 - San Francisco Federal Reserve President Daly said in an interview with the Associated Press that the conditions for downsizing could be reached later this year.

 - A senior US State Department official said that negotiations to join the EU and the Balkan countries have stalled.

 - Global production of Tesla in the II vehicles is a record high of 201,250 vehicles, lower than the 204,160 vehicles estimated by Bloomberg surveyors.

 - Nikkei News Quoting people familiar with the matter, the Tokyo Olympic Organizing Committee is considering holding the opening ceremony of the Olympic Games without tampering in place.

 2️⃣ Notable events and data today

 - China's Caixin Services PMI in June.

 - The final value of the services sector PMI in the Eurozone in June.

 - The Sentix Investor Confidence Index in the Eurozone in July and the UK Services PMI in June.

 - OPEC + will continue to meet at the ministerial level to discuss policies to increase crude oil production.

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Notable events and data today

  The European Parliament's Economic and Monetary Committee will hold a hearing, the President of the European Central Bank Lagarde will attend and deliver a speech.

 Governor of the Bank of England Bailey will give a speech.

 The 181st OPEC meeting will be held; OPEC ministerial supervisory committee meeting and non-OPEC oil producing countries;  The 18th OPEC and non-OPEC oil-producing countries ministerial meeting will take place At that time, you can pay attention to the price movement of the two oils.

 The US will release the initial number of jobless claims through June 26. The previous value was 411,000 and the expected value was 393,000.  The performance of the data can affect the volatility of the US dollar.

 The next day, Bostic, the 2021 FOMC voting committee and the president of the Atlanta Fed, will speak. 

Governor of the Bank of England Bailey will give a speech.

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Let's take a closer look at how these and other important events affect Indices

Weekly changes: SPX500 +3.26%

The SPX500 gained 3,2% for the week and closed Friday at the new all-historic high of 4,280.70. The U.S. Senate accepted President Biden's infrastructure deal. Therefore, all the stocks of the material and industrial sectors rose, pushing the main SPX500 higher. The yields on the ten-year U.S. Treasury notes closed Friday at 1.54%, almost unchanged from the previous week.

The U.S. dollar index (DXY) slightly corrected itself from its highest levels last week and consolidated at 91,797. The American nonfarm payroll report will be released this Friday. The two previous releases showed less than expected figures. Will the greenback weaken again affected by a third weak release, or will July start with a new DXY height?

KEY POINTS

The U.S President's infrastructure plan will boost the economy. In addition, the labour market will be at total capacity due to the spending plan. Thus, all of these investments would strengthen the labour force and help the economy grow. Biden also believes that the recent high inflation won't last long. He stated that the economy is 7-10 million jobs down, compared to the pre-pandemic level. The President plans to get these jobless Americans back to work without inflaming inflation by raising taxes for the rich and corporations.

Last Friday, the DXY index rose to a 2.5 month high after the Fed forecasted two rate hikes in 2023. However, as the week passed, the U.S. dollar slipped and consolidated at the 'pre-Fed' level since the officials gave contrasting opinions on inflation pressure. Nevertheless, all investment markets started filling with liquidity as the inflation fears eased. As a result, investors became more concentrated on their investment goals.

Most traders are still bullish this year with the stimulus. The Fed is committed to being dovish with the economy reopening due to vaccinations and overall corporate earnings rising

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Check out the news that happened in the last 24 hours

  1️⃣ Yesterday's main news

 - Tuesday's spot gold plummeted $25 within an hour before the US session, close to breaking the $1750 mark.

 - The president of the Federal Reserve Richmond in the United States stated that the labor market has not yet returned to pre-pandemic levels and hopes to slow down the pace of asset purchases after seeing more progress in market work.

 - The president of the Minneapolis Federal Reserve predicts that the US economy is still far from a full recovery and the number of jobs will increase after the summer.

 Excess cash will boost Fed overnight reverse repurchases demand to a record high on Tuesday.

 - US economic data overnight: Consumer confidence index in June hit a new high since the epidemic and the increase exceeded expectations.

 U.S. President Biden vowed on Tuesday to continue pressuring Congress until Congress has passed a bipartisan infrastructure deal and a larger tax and spending bill to advance the program.  its other governance agenda.

 - OPEC+ postponed the meeting of the Joint Ministerial Monitoring Committee for one day to Thursday, to give the countries more time to resolve their differences.

 - OPEC Secretary-General declares that the oil market is important Uncertainty requires oil-producing countries to be cautious.

 - The Central Bank of Russia will start testing the digital ruble in January 2022.

 2️⃣ Notable economic events and data today

 - The US will publish ADP employment numbers for June. The previous value was an increase of 978,000 and the forecast value was an increase of 600,000.  Investors pay attention to this data liệu

 - The US will announce the EIA of crude oil inventories until the end of the week on June 25.

 - Early tomorrow morning, the voting committee of the FOMC 2021 and Fed Chairman Richmond Barkin will participate in a roundtable with the theme "The view of the Hispanic communities on the impact of the economy and the epidemic".  

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Weekly View on Currencies

 Weekly changes: EURUSD -1.95%, GBPUSD -2.11%, USDJPY +0.56%, USDCAD +2.57%

The EURUSD pair traded flat with no volume from Monday till late Wednesday. However, it has continuously fallen, surpassing three psychologically 'imposing figures' (1.2100, 1.2000 and 1.1900) levels and finished the week at 1.18569. Such a sharp move was unusual for the currency pair in recent months. As far as the price fails to decline further, there is an understanding that the U.S. dollar's strength bounce can be temporary.

GBPUSD traded almost identically as EURUSD. The pair dropped to its lowest levels in six weeks and finished Friday at 1.37954. Therefore this was a big week for the U.K. data. And while some figures like CPI and GDP were positive, others, like retail sales, showed a decline of 1.4%. Since the country postponed its full re-opening after COVID restrictions, consumer demand fell 2%, the first drop in four months. The sterling may rebound this Thursday at the Bank of England's meeting results. The BoE was one of the first central banks to reduce asset purchases. Moreover, with the Fed expressing its confidence in the recovery by signalling the sooner steps, the British regulator should sound less dovish.

By midweek, USDJPY consolidated near the two-month tops, holding above 110.00. Thursday's upbeat U.S. data continued supporting the greenback. Nervousness ahead of NFP benefitted the safe-haven Japanese currency. However, the currency pair fell sharply after the release and lost 0.52% each day, stopping at 109.70 by Friday night.

KEY POINTS

The Forex market didn't expect a sizable move in the U.S.dollar last week. The Fed jumped one step ahead, and, as a result, the greenback is likely to remain well supported against the euro. Last week ECB's statement appeared dovish even before Powell's speech. After the Fed changed the situation, EURUSD might follow its decline if the ECB made no adjustments. ECB President Lagarde will speak on Monday, and she might refer to monetary policy. Also, this week's German PMI reports could be helpful. But if the numbers show no improvements, the contrast may push the pair lower. Moreover, when the initial impulse from the Fed meeting settles, the investors will realize that the correction has gone too far and EURUSD is in the oversold zone.

The 'simply oversold' term could be applied to the GBPUSD pair as well. Besides, as long as the PMI figures are published, the pair may rebound. At least, the index's preliminary forecast seems interesting. The Bank of England meeting may bring some surprises as well. The BoE was expected to wait until August before deciding on slowing down their bond purchasing. However, the speech will presumably be re-written at the very last moment.

USDJPY seems to be the only pair among the majors, which managed to return by Friday to its 'pre-Fed' levels of 110.2. Bank of Japan maintained its monetary policy, as was anticipated. Also, the Japanese Financial Minister stated that they expect the country's GDP growth to return to the pre-COVID levels in this fiscal year.

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