Morning Juice – Europe Session Prep

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

Sentiment

The Fed left interest rates unchanged, but a divided 9–3 vote highlighted growing concern among policymakers that higher borrowing costs may still be needed to bring inflation under control. Dallas Fed President Logan, Cleveland Fed President Hammack and Minneapolis Fed President Kashkari all dissented in favour of a 25 bps rate hike.

Fed Chair Warsh also remains under scrutiny, with investors questioning whether his restrained communication style reflects a sufficiently hawkish commitment to tackling inflation. Markets are looking for stronger policy signals in the months ahead.

Meanwhile, geopolitical tensions escalated after the US launched a fresh wave of strikes against Iran in response to attacks on military bases in the Middle East, raising the risk of a broader regional conflict.

Oil prices steadied following their biggest daily gain in more than two weeks as investors assessed the implications of renewed US strikes on Iran and the potential impact on global energy supplies.