What to watch for on Friday, July 29:
Thursday was another volatile day, with financial markets battling for direction. The dollar remained under pressure during Asian trading hours, resurfaced during the European session and came under pressure again in the US afternoon.
The USD’s intraday advance could be attributed to renewed recession-related fears following the tepid European data release. The EUR/USD pair traded between 1.0113 and 1.0233 to finally settle at 1.0180.
In the US, the Gross Domestic Product for the second quarter was published, which showed that the economy entered a technical recession after contracting 0.9% in the three months to June and after a contraction of 1.6% in the first quarter. However, the stock markets ignored the news. US indices soared to new multi-week highs, where they are at the start of the Asian session.
Different US authorities downplayed the negative data. Federal Reserve chief Jerome Powell anticipated this on Wednesday, saying a disappointing GDP figure should be taken with a pinch of salt. US Treasury Secretary Janet Yellen said Thursday that the contraction in the second quarter shows the economy is moving toward more sustainable growth. Finally, President Joe Biden noted that President Powell and several other high-level bank executives claim that the United States is not in a recession.
Biden also spoke with Chinese President Xi Jinping as part of US efforts to deepen lines of communication, responsibly manage differences, and address issues of mutual concern. Tariff reduction was not mentioned.
Haven assets were the best performers against the dollar. USD/CHF fell to 0.944, while USD/JPY bottomed at 134.19, both trading close. Gold soared and is now currently trading at $1,755 a troy ounce.
The GBP/USD pair maintained the bullish momentum and reached 1.2190, now hovering around 1.2165. Commodity-linked currencies posted modest intraday losses, helped by rising equities. AUD/USD is trading at 0.6980, while USD/CAD is at 1.2820.
Crude prices fell, with WTI trading at $97 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.
