The currency market traded mostly in a range as investors assessed the political situation in the US and caution emerged ahead of significant data releases later in the week.
Here’s what you need to know on Tuesday, July 23:
The USD (DXY) index saw a slight pause in growth, once again hovering around its 200-day SMA near 104.40. July 23 is expected to see the release of existing home sales data, the Richmond Fed Industrial Production Index, and the weekly API Crude Oil Inventory Report.
EUR/USD has regained some acceptable traction and managed to return to the 1.0900 area. On July 23, the European Commission will release its consumer confidence indicator. In addition, the ECB’s Lane will also give a speech.
GBP/USD has picked up steam and reversed two daily pullbacks in a row, shifting focus back to the 1.3000 region. The next data release of note from the UK will be the flash July PMIs, due on 24th July.
The erratic performance of the US dollar and higher yields on US and Japanese bonds left USD/JPY with modest losses near the 157.00 zone. Jibun Bank Advanced PMI is next in the Land of the Rising Sun on July 24.
AUD/USD extended its bearish move further south of 0.6700 on lower commodity prices and discouraging news from China. Next up on the Australian calendar will be the Judo Bank PMIs.
Demand concerns and easing geopolitical concerns weighed on WTI and led to prices falling below $78.00 per barrel.
Gold prices remained defensive and fell below the key $2,400 per troy ounce level. The same performance pushed silver prices lower for a fourth straight day and to fresh monthly lows near $28.70 per troy ounce.
