Here is what you need to know on Monday, July 18:
Markets remain risk-positive at the beginning of the week and the greenback is having a tough time finding demand. The US Dollar Index (DXY), which lost 0.6% on Friday, stays on the back foot in the early European session with US stock index futures rising nearly 1%. The European economic docket will not feature any high-tier data releases on Monday. Later in the session, the NAHB Housing Market Index from the US will be looked upon for fresh impetus.
On Friday, the data published by the University of Michigan showed that the Consumer Confidence Index edged higher to 51.5 in July's flash estimate from 49.9. More importantly, the long-run inflation expectation component of the survey declined to 2.8% from 3.1% in June's final print. After this data, the probability of a 100 basis points rate hike in July dropped below 30% from nearly 90% earlier in the week.
Commenting on the rate outlook, Atlanta Fed President Raphael Bostic said that moving "too dramatically" could undermine positive aspects of the economy. Meanwhile, the Wall Street Journal reported that over the weekend Fed policymakers were preparing to raise the policy rate by 75 basis points at the upcoming meeting.
EUR/USD closed the third straight week in negative territory but managed to erase a portion of its weekly losses during Friday's rebound. As of writing, the pair was edging higher toward 1.0150.
Earlier in the day, the data from New Zealand revealed that the Consumer Price Index jumped to 7.3% on a yearly basis in the second quarter from 6.9% in the first quarter. This print came in higher than the market expectation of 7.1%. NZD/USD pair gained traction after this data and started to rise toward 0.6200.
GBP/USD managed to build on Friday's recovery gains early Friday and was last seen trading at its highest level in five days near 1.1950.
Gold suffered heavy losses and registered its lowest weekly close in nearly a year. Supported by the broad-based dollar weakness early Monday, gold gathered recovery momentum and climbed to the $1,720 area.
Bitcoin capitalizes on risk flows early Monday and trades near the upper limit of its one-month-old range near $22,000. Ethereum is already up more than 8% on a daily basis on Monday and continues to push higher toward $1,500.
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 accelerates losses to 1.0930 on stronger Dollar
The US Dollar's recovery regains extra impulse sending the US Dollar Index to fresh highs and relegating EUR/USD to navigate the area of daily troughs around 1.0930 in the latter part of Friday's session.
GBP/USD plummets to four-week lows near 1.2850
The US Dollar's rebound keep gathering steam and now sends GBP/USD to the area of multi-week lows in the 1.2850 region amid the broad-based pullback in the risk-associated universe.
Gold trades on the back foot, flirts with $3,000
Gold prices are accelerating their daily decline, steadily approaching the critical $3,000 per troy ounce mark as the Greenback's rebound gains extra momentum and US yields tighten their retracement.
Can Maker break $1,450 hurdle as whales launch buying spree?
Maker holds steadily above $1,250 support as a whale scoops $1.21 million worth of MKR. Addresses with a 100k to 1 million MKR balance now account for 24.27% of Maker’s total supply. Maker battles a bear flag pattern as bulls gather for an epic weekend move.
Strategic implications of “Liberation Day”
Liberation Day in the United States came with extremely protectionist and inward-looking tariff policy aimed at just about all U.S. trading partners. In this report, we outline some of the more strategic implications of Liberation Day and developments we will be paying close attention to going forward.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.