What to watch for on Tuesday, July 19:
The dollar spent most of the first day of the week on the wrong foot, losing ground against most of its major rivals. However, it rallied in the US afternoon as Wall Street failed to sustain early gains and turned lower.
The USD started to slide on Friday as encouraging US data temporarily cooled recession-related concerns. Monday’s meager macroeconomic calendar kept it lower ahead of the central banks’ decision. The US Federal Reserve entered its lockdown period ahead of next week’s meeting, while the European Central Bank will announce its monetary policy next Thursday.
The energy crisis in Europe could change the course of the EUR/USD, which recovered to 1.0200. Russian company Gazprom has declared force majeure on supplies and said it cannot guarantee gas supplies to Europe due to “extraordinary” circumstances. The International Energy Agency has warned that the EU must reduce gas consumption in the face of winter. The pair is currently trading around 1.0150.
A weaker dollar helped GBP/USD to reach 1.2039, but the pair pulled back towards the current 1.1960 area amid deteriorating sentiment late in the day.
Commodity-linked currencies held onto most of their early gains, with AUD/USD trading at 0.6815 and USD/CAD at 1.2965. Finally, the yen and the Swiss franc, haven currencies, recorded modest gains against the dollar.
Gold tried to recover some ground, but ended the day around $1,708 a troy ounce and is at risk of falling further. Crude prices, meanwhile, retain most of their early gains, with WTI now trading at $98.80 a barrel.
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
