Forex Today: After a quiet day attention turns to FOMC minutes

Matías Salord FXStreet

During the Asian session, Australian activity data is due, as well as the Chinese Caixin Services PMI. The final European PMI readings are also due, along with the Eurozone Producer Price Index. Later in the day, the Federal Reserve will release the minutes of its latest meeting.

Here is what you need to know on Wednesday, July 5:

On a quiet day due to a holiday in the US, the US dollar posted mixed results. Commodity currencies were the top performers. Markets await new information, and volatility is set to pick up on Wednesday with the release of the FOMC minutes. Then, the focus will turn to US labor market data with the ADP report, JOLTS, and Jobless Claims on Thursday, and on Friday, with the Nonfarm Payrolls report.

The US Dollar Index rose above 103.00, boosted only by the decline of the EUR/USD, which fell under 1.0900. The Euro was the worst performer among majors. On Wednesday, the final reading of June PMIs is due in the Eurozone, as well as the June Producer Price Index (PPI).

GBP/USD rose modestly and held above 1.2700 while EUR/GBP resumed its decline, falling toward 0.8550 and posting the lowest close in two weeks.

USD/JPY moved sideways around 144.50 in a tight range. The Yen benefited from a modest decline in European stocks and as European bond yields pulled back moderately.

AUD/USD recovered on Tuesday after a slide that followed the Reserve Bank of Australia's (RBA) decision to keep rates unchanged. The pair bottomed at 0.6641 and then rebounded, reaching levels above 0.6700. On Wednesday, the AIG Manufacturing Index is due, as well as the final Global Services PMI.

TD Securities on RBA:

We retain our call for the RBA to hike in August. However, calls beyond that will be more data dependent and based on today's Statement suggest an upside surprise in inflation will be required to bring the RBA back to the hiking table after that. At this stage the risk to our 4.85% call is that the tightening cycle is drawn out rather than the RBA calling it a day on rate hikes.

The kiwi was among the top performers, with AUD/NZD hitting one-month lows after the RBA decision, falling below 1.0800. NZD/USD rose for the third consecutive day and posted the strongest daily close in two weeks, slightly below 0.6200 and above key daily simple moving averages.

USD/CAD dropped on Tuesday but found support above 1.3200. The weaker dollar and a recovery in crude oil prices after Saudi Arabia and Russia's output cut favored the Loonie.

Metals rose modestly on Tuesday, with Gold testing levels above $1,930 but again failing to hold above and pulling back. Silver continues to be limited by the $23.00 area.

Like this article? Help us with some feedback by answering this survey:

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.