The Greenback managed to stage a comeback after a pessimistic start to the week amidst a generalized appetite for the risk complex and rising prudence prior to the speech by Chair Powell, and the ECB’s Lagarde on Tuesday.
Here is what you need to know on Tuesday, July 2:
The USD Index (DXY) left behind two consecutive sessions of losses and refocused on the key 106.00 barrier. The Fed’s Chair J. Powell will participate at an event at the ECB Forum in Portugal. On the docket, the RCM/TIPP Economic Optimism Index is only due on July 2.
EUR/USD kept its constructive stance well in place and rose to three-week tops around 1.0780 as investors assessed the results from the French snap elections on Sunday. On July 2, preliminary Inflation Rate in the euro bloc is expected prior to the speech by the ECB’s C. Lagarde at the bank’s forum in Sintra (Portugal).
GBP/USD gave away an earlier move to the area just past the 1.2700 hurdle on the back of the resumption of the buying interest in the US Dollar towards the end of the NA session. There will be no data releases across the Channel on July 2.
USD/JPY advanced further and reached new highs in the proximity of the 162.00 region. The Japanese docket will be empty on July 2.
The resurgence of the downward bias in AUD/USD left the pair navigating within the so far unchanged consolidative theme around 0.6650. The RBA Minutes are only expected in Oz on July 2.
Rising optimism regarding the start of the US driving season and supply fears in the second half of the year lifted WTI prices to new highs north of the $83.00 mark per barrel.
Gold prices remained stuck within their recent range near the $2,330 zone per ounce troy, while Silver prices rose for the third session in a row, although still below the key $30.00 mark per ounce.
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Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
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Eurozone PMI sounds the alarm about growth once more
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