Global macro overview for 27/07/2015:

The coming week looks very interesting for financial markets with the main focus on two important events that might shape how the markets will trade over the next couple of months. The first important event is Fed's two-day meeting scheduled for Tuesday and Wednesday, the second one is the report on US corporate earnings as the last set of data before a potential Fed's rate hike. For most of the global economies (USA, China, Japan, EU), commodities (Oil, Gold, Silver), commodity-related currencies (AUD, NZD), and emerging markets this two -ay Fed's meeting is one of the most important since QE3 announcement. The questions whether the Fed will raise rates or wait for stronger signs of the US economy is the question that everyone is focusing on this week. Most of the market participants believes that the Fed is highly unlikely to raise rates this week, as it never does that without a press conference afterwards. Nevertheless, any hint or suggestion that the Fed is planning to raise rates this year will create a very volatile market conditions. Despite the repetitive statements form Janet Yellen about a possibility of a rate hike this year, market participants are in the state of denial, thinking that the economy is not strong enough for the first hike in nine years. The result of this might be quite a shock for the markets and very negative for commodity-related assets.

The EUR/USD pair is trading very slowly at the beginning of the week as the market awaits the Fed's statement. Currently, we can see EUR/USD trying to breakout above the golden descending trend line on daily chart.