Morning Juice – Europe Session Prep

Good Morning Traders.
It is Wednesday, the 29th of July. Here is what to look out for today.

Sentiment

Australia’s core inflation slowed more than expected last quarter, prompting traders to sharply reduce expectations for another RBA interest rate hike this year.

Oil prices surged after fresh fighting erupted in the Middle East, undermining diplomatic efforts to end the conflict and raising concerns over further disruptions to global energy supplies.

The US said it intercepted an Iranian attack on military bases, ending a days-long pause in hostilities and increasing the risk of a broader escalation in the region.

Markets are widely expecting the Fed to leave interest rates unchanged at the conclusion of its two-day meeting on Wednesday, although investors continue to monitor the possibility of a surprise rate hike as inflation remains stubbornly high.

Meanwhile, positions in futures linked to the Fed’s benchmark interest rate have climbed to a record high, reflecting growing expectations that policymakers could adopt a more hawkish stance at this week’s meeting.