The euro is getting stronger, the market’s eyes are already on the central banks of the USA and Japan

Movements in the interest rate market were small on Tuesday. The interest rates on the 10-year bonds of the United States and major euro countries were mostly on a very slight decline.

The market is waiting for, among other things, the figures on US consumer confidence that will be available later today in the afternoon, but above all the US central bank’s interest rate decision tomorrow.

The euro area received figures today on consumer and financial confidence in July. Consumer confidence remained at a weak level, in line with preliminary figures. Economic confidence weakened less than expected compared to June.

Consumer confidence in the United States is clearly at a higher level, but the figure is expected to have weakened in July to a score of 99.7 from June’s quote of 100.4.

The Fed is not expected to cut interest rates tomorrow, but the governor Jerome Powellin is expected with his comments to pave the way for a rate cut at the Fed’s Open Market Committee’s next interest rate meeting in September.

The Fed’s interest rate decision tomorrow will be published on Wednesday evening Finnish time. Before that, early Finnish time on Wednesday, the Bank of Japan’s interest rate decision is expected.

Japan’s central bankers started their own interest rate meeting today. The consensus expectation is that the Bank of Japan will keep the key interest rate in the range of 0.00 to 0.10 percent. Some economists have also hinted at the possibility of an interest rate hike already at the July meeting.

The Japanese currency, the yen, had weakened strongly against other major currencies on Tuesday. The yen had weakened by 0.6 percent against the euro, 0.5 percent against the dollar and 0.4 percent against the pound. The euro was the strongest of the major currencies on Tuesday.

Eurozone gross domestic product grew in the second quarter at a pace of 0.3% from the previous quarter, instead of the expected 0.2% according to preliminary figures, which lifted the mood a bit from the gloomy economic outlook in the eurozone in recent weeks.

You got 1.083 dollars for the euro and 154.87 yen for the dollar.