Forex Today: All eyes on the US Federal Reserve

 Here is what you need to know on Wednesday, July 29:

  The USD got to recover some ground at the beginning of the day, after  late on Monday, US Senate Republicans unveiled the new coronavirus aid package proposal, that will now need Democrats’ support. The plan would include another round of $1,200 in direct payments to individuals, more money for the Paycheck Protection Program, a reduction in federal unemployment benefits from $600 to $200, liability protection, and more than $100 billion for reopening schools. Later in the day, US Senate majority leader McConnell says no bill will be put on floor without liability protection.

Dollar’s gains were limited and temporal, indicating that the American currency remains out of investors’ radar ahead of the Federal Reserve decision and the preliminary estimate of Q2 GDP.

The EUR/USD pair finished the day with modest losses around 1.1720 confined to a tight range on a daily basis.  

GBP/USD soared to the 1.2950 region, holding nearby at the end of the day, backed by an upward surprise in a local retail sales report.

UK PM Johnson warned of a second wave of coronavirus hitting Europe, adding that he won’t hesitate to take decisive action to prevent the UK from suffering from another outbreak. His comments came after the UK imposed a two-week quarantine to all those travelers arriving from Spain.

Wall Street closed in the red after Asian and European indexes posted tepid gains. Earnings reports missed expectations amid coronavirus lockdowns.

Commodities eased from their recent highs, with gold flirting with 1,900 but settling at around $1,960 a troy ounce.

Oil prices eased ahead of US stockpiles reports, but WTI settled at around $41.00 a barrel.

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