US Dollar Strengthens Amid Economic Data
The US dollar (USD) reached a new multi-week high during the press conference, buoyed by robust US economic indicators and positive remarks following the Federal Reserve’s decision to maintain interest rates.
What to Expect on Thursday, July 31st
The US Dollar Index (DXY) continued its ascent, nearing the 100.00 mark, the highest it’s been in two months. Key economic data to watch includes PCE figures alongside personal income and expenses, the employment cost index, Chicago PMI, Challenger job cuts, and weekly unemployment claims.
The EUR/USD pair fell to new multi-week lows, nearing the 1.1400 support level, driven by the ongoing strength of the dollar. In Europe, the unemployment rate is being supported by Germany’s preliminary inflation data.
GBP/USD returned to the 1.3230 level for the first time since early May, amid increasing sales pressures on the UK pound and further gains for the USD. Upcoming on the UK economic calendar are the National Home Price Index and the Final S&P Global Manufacturing PMI on August 1st.
USD/JPY resumed its upward trend, hitting a nearly three-month high close to 149.50, while also testing a crucial 200-day moving average. Additionally, Japan’s TAP will see significant economic announcements including BOJ’s interest rate decision, industrial production, retail sales, and foreign investment data on July 31st.
The AUD/USD fell to a five-week low around 0.6420, staying pressured by the ongoing strength of the dollar. Key data includes retail sales, building permits, private home approvals, and import prices.
Crude oil prices surged past the crucial $70.00 per barrel mark, driven by factors related to US-Russian tensions and ongoing trade anxiety.
Gold prices approached $3,270 per troy ounce on Wednesday as investors considered recent economic data and the Federal Reserve’s cautious long-term outlook. Meanwhile, silver experienced a pullback on Tuesday, flirting with a three-week low at around $37.50 per ounce.
