“The key focus for markets this week is the July FOMC meeting, which concludes on Wednesday,” notes ABN AMRO senior economis Bill Diviney. “We and consensus look for a 25bp cut at this meeting, though there is some residual market expectation for a 50bp cut (none of the analysts surveyed by Bloomberg expect such a move).” Key quotes “Given the dovish signalling from officials, the weakness in forward-looking indicators (particularly for manufacturing), and the persistence of downside risks to the outlook, we think a 25bp cut is a done deal. However, even the most dovish members of the committee (such as St Louis Fed President James Bullard) have expressed scepticism over a 50bp cut, so such an aggressive move looks unlikely.” “The question therefore will be to what extent the Fed signals additional easing steps beyond what was signalled in June. With no update to the Committee’s projections at this meeting, it will be up to Chair Powell to steer market expectations via the press conference.” “Given that this will be the first rate cut since the financial crisis, Powell will likely want to make a robust case for the move, and will sound accordingly dovish. We expect the emphasis to remain on the downside risks to the outlook, but reference will also be made to muted inflation and the possible de-anchoring of expectations, as well as the weakening in business confidence. All of this should support expectations for rate cuts, but we suspect he will struggle to ‘out-dove’ the market at this stage given what is already priced in (a further 65bp in cuts beyond the expected 25bp July move). We continue to expect an additional two 25bp cuts by Q1 2020 following the expected July cut.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Ripple further expands in Latin America signing partnership with Chilean remittance company Currency Bird FX Street 4 years "The key focus for markets this week is the July FOMC meeting, which concludes on Wednesday," notes ABN AMRO senior economis Bill Diviney. "We and consensus look for a 25bp cut at this meeting, though there is some residual market expectation for a 50bp cut (none of the analysts surveyed by Bloomberg expect such a move)." Key quotes "Given the dovish signalling from officials, the weakness in forward-looking indicators (particularly for manufacturing), and the persistence of downside risks to the outlook, we think a 25bp cut is a done deal. However, even the most dovish members of the committee… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.