The US Dollar (USD) has been showing a strong rebound at the start of the week as investors analyze recent trade discussions involving the US, Japan, and the European Union. Attention is also shifting towards the upcoming FOMC meetings and the release of non-farm payroll data.
Here’s what to expect on Tuesday, July 29th:
The US Dollar Index (DXY) has increased for three consecutive days, moving well past the 98.00 mark. This rise follows the Flash Goods trade balance results, bolstered by reports on wholesale inventory from API, the FHFA housing price index, Jorz recruitment figures, the Conference Board’s Consumer Confidence Index, the Dallas FED Services Index, and US Crude Oil Inventory data.
The EUR/USD pair has dropped to a low not seen in a few days, falling below 1.1600 due to ongoing US-EU trade negotiations and the strengthening dollar. Consumer inflation expectations from the ECB are on the horizon.
The GBP/USD saw a fairly sharp decline, landing near 1.3350, marking a significant drop from the 1.3400 level, driven by the dollar’s robust performance. The upcoming release of the BOE’s consumer credit figures, along with M4 money supply data and loans to individuals, is anticipated, as well as mortgage approvals.
The USD/JPY continued to rise on Monday, climbing past the 148.00 level for the third day in a row, fueled by further gains in the dollar. Japanese data due on July 31st includes the BOJ’s interest rate decision, industrial production figures, retail sales, and foreign bond investments.
The AUD/USD has touched a four-day low, nearing the 0.6500 mark, in light of the positive sentiment surrounding the US dollar. The next inflation rate figure is set to be released on July 30th.
Crude oil prices have bounced back sharply, reaching a multi-day high of $67.00 a barrel as traders assessed the US-EU trade agreement and Trump’s tight deadline regarding the conflict in Ukraine.
Gold prices have remained steady but have slipped to a three-week low, testing the $3,300 per troy ounce mark amidst increased optimism on the trade front and the stronger dollar. Silver has also seen a decline, moving down from the support level of $38.00 per ounce.
