Considering the recent noise from the Fed after June’s meeting, it seems very likely that the central bank will decide to ease monetary policy during its meeting at the end of July. However, the Fed doesn’t seem pressured to take the hard approach and immediately cut rates by more than 25 basis points.

Today, the markets are awaiting Germany’s June inflation data, that would be an opening to tomorrow’s preliminary print for the entire common currency area. Aside from that, a final revision of GDP growth estimate in the US will also be watched by the markets.

Markets await the G20 meeting

The next few days will be key for EUR/USD and the Fed. As G20 country leaders will gather in Osaka, the market’s focus will shift to the trade war. With Donald Trump, nothing can be guaranteed, but markets are hoping that during the meeting with his Chinese counterpart, faith in the US-China trade relationship might finally take a turn for the better. The communication from both the US and China after the meeting would be key to assessing the sentiment towards a possibility of reaching a potential deal, even if the actual resolution in this context might take some time.

Sterling finds ground after Boris Johnson eases tone

Recently, Sterling volatility eased somewhat. It decreased alongside the changes in EUR/USD and a change in tone from Boris Johnson, who’s widely expected to become the UK’s prime minister at the end of the month. In his latest remarks, Johnson struck an optimistic tone saying that the chances of no-deal Brexit are ‘a million-to-one against’. The claim suggests that he is determined to get the deal done and approved by MPs.