Quite a negative week saw the Greenback close with losses in every single session, forcing the USD Index (DXY) to break below the key 105.00 support at the end of the week. Lower US yields, in combination with soft data, brought forward expectations of a rate cut by the Fed as soon as September. In addition, investors largely anticipated the landslide victory of the Labour Party at the UK elections, while cautiousness lingers ahead of the French second round of the snap elections on July 7.
The US Dollar (USD) came under strong selling pressure and ended the week around 105.00, the lowest level in the past three weeks. The New York Fed will publish its Consumer Inflation Expectations on July 8, while Chair J. Powell will hold his semi-annual testimony before Congress on July 9. Mortgage Applications tracked by MBA and Wholesale Inventories come on July 10 ahead of the Inflation Rate, and usual Initial Jobless Claims are due on July 11. Finally, Producer Prices and the flash Michigan Consumer Sentiment will be published on July 12.
EUR/USD extended its strong comeback and finally trespassed the key resistance at the 1.0800 region, boosted by the renewed offered bias in the Greenback. The Sentix Index, which tracks Investor Confidence in the euro area, kicked off the calendar on July 8 along with Balance of Trade results in Germany. On July 11, the final Inflation Rate in Germany will be revealed, while German Current Account figures will be unveiled on July 12.
GBP/USD saw its multi-day rally reclaim the area beyond the 1.2800 barrier towards the end of the week, always amidst Dollar’s weakness and investors’ assessments of the avalanche win by the Labour Party at the July 4 elections. The BRC Retail Sales Monitor is due on July 9, while GDP figures, Construction Output, Goods Trade Balance, Industrial and Manufacturing Production, and the NIESR Monthly GDP Tracker are all expected on July 11.
USD/JPY advanced further and clinched new 38-year highs within the boundaries of the 162.00 hurdle, closing its fourth straight week of gains. Average Cash Earnings and Bank Lending come on July 8, while Producer Prices are due on July 10, along with the Eco Watchers Survey. On July 11, weekly Foreign Bond Investment will be released along with Machinery Orders. On July 12, final Industrial Production will close the weekly calendar.
The broad-based improved sentiment in the risk complex lent legs to AUD/USD and encouraged it to surpass the key 0.6700 level with certain conviction as the week drew to a close. Home Loans and Investment Lending for Homes are expected on July 8, seconded by the Westpac Consumer Confidence Index on July 9. On July 12, the Melbourne Institute will publish its Consumer Inflation Expectations.
Anticipating Economic Perspectives: Voices on the Horizon
- The BoE’s Haskel and Benford speak on July 8.
- The Fed’s Bowman and Barr are due to speak on July 9 along with BoE’s Cleland and Thuran. In addition, Chief Powell testifies before Congress.
- The RBA’s Simon, the ECB’s Nagel, the BoE’s Pill and Mann, along with the Fed’s Goolsbee and Bowman are all expected to speak on July 10. In addition, Chair Powell testifies before Congress.
- The Fed’s Bostic, Cook and Musalem speak on July 11.
Central Banks: Upcoming Meetings to Shape Monetary Policies
- The RBNZ meets on July 10.
- The Malaysian central bank (MNB) and the Bank of Korea (BoK) will decide on rates on July 11.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD flirts with 1.0500 on mixed US PMI readings
The bullish momentum remains unchanged around EUR/USD on Friday as the pair keeps its trade close to the area of multi-week highs around the 1.0500 barrier in the wake of the release of mixed results from the preliminary US Manufacturing and Services PMIs for the current month.
GBP/USD challenges recent peaks near 1.2450
GBP/USD pushes harder and puts the area of recent two-week highs near 1.2450 to the test on the back of the intense sell-off in the Greenback, while the British pound also derives extra strength from earluer auspicious prints from advanced UK Manufacturing and Services PMIs.
Gold keeps the bid bias near its all-time high
Gold prices maintain the bid tone near their record top at the end of the week, helped by the intense weakness around the US Dollar, alleviating concerns surrounding Trump's tariff narrarive, and a somewhat more flexible stance towards China.
Dogelon Mars pumps more than 85%, whales dump 128 billion coins and realize a profit
Dogelon Mars (ELON) price continues its rally on Friday after rallying more than 18% this week. On-chain data shows that ELON whale wallets realized profits during the recent surge. The technical outlook suggests a rally continuation of the dog-theme meme coin, targeting double-digit gains ahead.
ECB and US Fed not yet at finish line
Capital market participants are expecting a series of interest rate cuts this year in both the Eurozone and the US, with two interest rate cuts of 25 basis points each by the US Federal Reserve and four by the European Central Bank (ECB).
Trusted Broker Reviews for Smarter Trading
VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.