Dollar surges as Trade Deals boost Confidence; Key Economic Data on deck
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The US Dollar is experiencing a robust rebound, igniting investor confidence at the week’s commencement. This upward momentum is largely attributed to recent trade agreements struck between the United States, Japan, and the European Union. As the week unfolds, market participants are keenly awaiting the upcoming Federal Open Market Committee (FOMC) meeting and the crucial Nonfarm Payrolls report for further direction.
Tuesday’s Economic Calendar Highlights
The US Dollar Index (DXY) has climbed for three consecutive sessions, decisively surpassing the 98.00 level. Investors will be closely monitoring a series of economic releases today, including the flash Goods Trade Balance, Wholesale Inventories, the FHFA House Price Index, JOLTs Job Openings, the Conference Board’s Consumer Confidence survey, the Dallas Fed Services Index, and the API’s weekly report on US crude oil inventories.
Currency Market Movements
The EUR/USD pair has retreated to multi-day lows, dipping below the 1.1600 mark. this decline follows the US-EU trade deal and the strengthening of the Greenback. The European Central bank’s consumer inflation Expectations will be a key data point for the Eurozone.
The GBP/USD has also succumbed to the Dollar’s strength, falling to levels not seen since mid-May, trading near 1.3350. Today’s UK economic calendar includes Consumer Credit figures,M4 Money Supply,Net Lending to individuals,Mortgage Lending,and Mortgage Approvals.
The USD/JPY pair continues its upward trajectory, marking its third consecutive day of gains and breaking above the 148.00 barrier, buoyed by the Dollar’s broader strength. Looking ahead, Japan’s economic calendar for July 31 includes the Bank of Japan’s interest rate decision, Industrial Production, Retail Sales, and Foreign Bond Investment figures.
The AUD/USD has retreated to four-day lows, approaching the 0.6500 level, as sentiment favors the US Dollar. Australia’s upcoming economic data includes the Inflation Rate, scheduled for release on July 30.
Commodities Watch
Crude oil prices have staged a notable rebound,wiht WTI crude reaching $67.00 per barrel,marking multi-day highs. Traders are assessing the impact of the US-EU trade deal and President Trump’s directive for Russia to end its conflict with Ukraine.
Gold prices remain under pressure,falling to three-week lows and testing the $3,300 per troy ounce level. This weakness is attributed to the firmer Greenback and increased optimism surrounding trade negotiations. Similarly, silver prices have extended their retracement, breaking below the $38.00 per ounce support.
