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The Federal Reserve officials are expected to keep the current interest rates unchanged at their two-day policy meeting this week. However, they are likely to signal a potential rate cut in September. Economists predict that the Fed will maintain the benchmark rate at a range of 5.25% to 5.5%. Given recent lower inflation readings and a slight increase in unemployment, the Fed is expected to acknowledge progress towards their 2% inflation target. Fed Chair Jerome Powell is anticipated to provide cautious indications of future rate cuts, emphasizing data-dependent decision-making and addressing concerns about the labor market. Investors are expecting possible rate cuts in September, November, and December.

The EURUSD exchange rate saw an uptrend beginning June 26, peaking at 1.09480 on July 17, before reversing into a bearish failure swing pattern, indicating a potential downtrend. 
This analysis identifies key upside and downside targets for traders. Additionally, it considers the Federal Reserve's upcoming interest rate decision on July 31, which could significantly impact the EURUSD exchange rate. A hawkish stance from the Fed might strengthen the USD, while a dovish approach could favor the euro.

The most recent report from the Energy Information Administration (EIA) on July 17, 2024, indicated that Crude Oil inventories in the US decreased by 4.9 million barrels for the week ending July 12, 2024, which was lower than the -0.9 million barrels predicted by economists. 
Despite causing a temporary surge in Crude Oil prices on the day of the report, the commodity has experienced a 5.3% decline compared to the week of June 30.  The decline can also be attributed to the global economic slowdown and mixed economic indicators.

The GBPJPY is bouncing back from the lower Bollinger Band despite the recent release of UK Retail Sales, which revealed a weakening of consumer spending. The report showed a decline from the previous month and fell short of analysts' projections, which had anticipated a milder decrease. Traders are expected to closely monitor the currency pair in light of the forthcoming release of significant economic data that could impact currency valuations.
 

The Pound Sterling remains on a bullish trajectory amid geopolitical developments and political turmoil in the US, while the Relative Strength Index shows signs of exhaustion, hovering above overbought territory. Traders are expected to closely monitor the currency pair in light of the forthcoming release of significant economic data that could potentially impact currency valuations.

The major JPY currency pairs dropped after the Consumer Price Index data, a key indicator of inflation, showed a slowdown in consumer prices. This brought the Fed closer to its 2% target and led to discussions of a rate cut in September. The USDJPY is currently recovering after yesterday's daily range of 433 pips. Traders are expected to keep a close eye on the currency pair due to the upcoming release of significant economic data, including the Producer Price Index, which could impact currency valuations.

The Reserve Bank of New Zealand's less Hawkish statement prompted speculation of a potential interest rate cut later in the year, contingent upon inflationary pressures easing. In response to the Committee's statement, the NZD/USD exchange rate dipped below the moving average line, signaling bearish pressure. Traders are expected to monitor the currency pair in light of the upcoming release of significant economic data that could potentially impact currency valuations.

The EURUSD advanced amid softer-than-expected US ISM Services PMI coupled with a possible slowdown in the US labor market, as indicated by the latest ADP report showing that private payroll growth edged lower in June. Traders are expected to closely monitor the currency market in light of the forthcoming release of significant economic data, including the week's main event, the Nonfarm Payrolls, that could potentially impact currency valuations.