Forex Today: The ECB and Lagarde steal the show

Pablo Piovano FXStreet

The Greenback extended its downtrend to new four-month lows in response to another FX intervention by the BoJ, firmer rate-cut bets, and the broad-based better tone in risk-associated assets. On Thursday, the ECB will most likely maintain its policy rates unchanged, while investors are expected to closely follow President Lagarde for any clues on the next rate cut.

Here is what you need to know on Thursday, July 18:

Further weakness sent the USD Index (DXY) to the sub-104.00 region, or four-month lows, helped by the lack of traction in US yields. The usual weekly Initial Jobless Claims and the Philly Fed Manufacturing Index are due on July 18 seconded by the CB Leading Index and Net Long Term TIC Flows. In addition, the Fed’s Logan is also expected to speak.

EUR/USD rose to multi-week highs around 1.0950 in response to the increased selling pressure in the Dollar. On July 18, the ECB should leave its interest rates unchanged, while attention will also be on the press conference by President Lagarde.

GBP/USD finally surpassed the 1.3000 barrier for the first time since July 2023. The publication of the UK labour market report should take centre stage in the domestic docket on July 18.

USD/JPY dropped further in response to another suspected intervention in the FX space by the BoJ. The Balance of Trade and weekly Foreign Bond Investment figures will be unveiled on July 18.

AUD/USD clinched its third daily pullback in a row amidst further weakness in the commodity universe and Chinese demand concerns. The always-relevant Australian labour market report will be at the centre of the debate on July 18.

A weaker Dollar, reignited geopolitical jitters, and the larger-than-expected weekly drop in US crude oil inventories all lifted WTI prices to three-day peaks near the $83.00 mark per barrel.

Gold prices rose to an all-time top near $2,490 per ounce troy before correcting a tad lower towards the end of the session. Silver sold-off and challenged the $30.00 mark per ounce, or two-week lows.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD weakens to four-week lows near 1.1750

EUR/USD’s selling pressure is gathering pace now, approaching the area of multi-week troughs in the mid-1.1700s on Thursday. The pair’s intense decline comes on the back of another day of solid gains in the US Dollar, particulalry exacerbated following firm prints from the weekly US labour market.

GBP/USD drops further, hovers around 1.3460

In line with the rest of its risk-linked peers, GBP/USD faces increasing selling pressure and recedes toward the 1.3460 region, or four-week lows, on Thursday. Cable’s persistent pullback comes in response to the continuation of the recovery in the Greenback amid a solid US data and a divided FOMC when it comes to the Fed’s rate path.

Gold clings to daily gains near $5,000

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Ripple slips toward $1.40 despite SG-FORGE tapping protocol for EUR CoinVertible

XRP extends its decline, nearing $1.40 support, as risk appetite fades in the broader market. SG-FORGE’s EUR CoinVertible launches on the XRP Ledger, leveraging the blockchain’s scalability, speed, security, and decentralization.

Hawkish Fed minutes and a market finding its footing

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Injective token surges over 13% following the approval of the mainnet upgrade proposal

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