Forex Today: Draghi set to rock EUR/USD, PM Boris Johnson culls cabinet, top-tier US data eyed

Yohay Elam FXStreet

Here is what you need to know on Thursday, July 25th, the European session:
- The European Central Bank is left, right, and center. President Mario Draghi has pledged to provide fresh monetary stimulus but analysts are split on the timing: now or in September. Moreover, it is unclear if the ECB will settle for only cutting interest rates or also opening the door to resuming the QE program. Markit's latest PMIs have been downbeat and increase expectations for imminent action. German IFO Business Climate will provide the last data point before the event. EUR/USD has been on the back foot.

- UK PM Boris Johnson has announced his new cabinet which includes Thatcherite Sajid Javid as Chancellor of the Exchequer and hardline Brexiteer Dominic Raab as Foreign Secretary, lowering the chances of a deal with the EU. Political experts suspect the UK is heading to elections. GBP/USD has been steady amid the change of the guard.

- US data was mostly disappointing with New Home Sales coming out at 646K annualized – another worrying sign for the sector. Today's Durable Goods Orders provides critical insight for Friday's GDP. The USD is stable and next week's Fed decision is awaited.

- Cryptocurrencies are recovering with Bitcoin topping $10,000. Oil and gold are stable.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

EUR/USD keeps the offered stance just above 1.1700

EUR/USD is coming under heavy selling pressure in what has been a rather grim start to the new trading week, with the pair now trading close to the 1.1700 support area as the US Dollar stages a solid rebound. The prevailing flight to safety mood continues to favour the Greenback, as investors react to the escalating conflict in the Middle East and trim risk exposure across the board.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold battles to retain the positive momentum

Gold now surrenders part of the earlier advance past the $5,400 mark per troy ounce at the beginning of the week. Indeed, the precious metal’s strong uptick remains fuelled by increasing geopolitical tensions in the Middle East amid the intense demand for safer assets.