This is what you need to know to trade today friday july 22:
Although the euro gained strength following the European Central Bank’s (ECB) decision to hike its key rates by 50 basis points, it lost its bullish momentum early on Friday amid the observed negative change in risk sentiment. The dollar index advances towards 107.00 in the European session and US stock index futures are down 0.3%-0.8%. S&P Global will publish on Friday the preliminary surveys of manufacturing and services PMIs for Germany, the euro zone, the United Kingdom and the United States. The Canadian economic calendar will include retail sales data for May.
In addition to the double-dose hike in fees, the ECB unveiled its new anti-fragmentation tool called the Transmission Protection Instrument (TPI). The central bank also abandoned forward guidance, saying each meeting will be live and that they will weigh the data when making a decision. ECB President Christine Lagarde refrained from sharing key details about the ICC during the press conference. Meanwhile, Italian President Sergio Mattarella has dissolved the Italian parliament, triggering early elections on September 25.
After having advanced towards 1.0300, the EUR/USD it erased a portion of its daily gains and closed in positive territory near 1.0250 on Thursday. The pair is trading near 1.0200 early on Friday.
The GBP/USD closed virtually unchanged near 1.2000 on Thursday, but started to drop towards 1.1950 on Friday. Data released by the UK Office for National Statistics showed earlier in the day that retail sales decreased 0.1% in June. In the 12 months through June, sales were down 5.8%, versus market expectations for a 5.3% contraction.
Pressured by the sharp decline in US Treasury bond yields, the USD/JPY fell to its lowest level in more than a week, near 137.00, but managed to reverse course before the weekend. With the benchmark 10-year US Treasury yield remaining in positive territory after Thursday’s 5% drop, the pair is higher towards 138.00. The Japanese Finance Minister, Shunichi Suzuki said on Friday that raising rates could slow the economy’s recoverysignaling support for the Bank of Japan’s stance to maintain monetary stimulus despite the global tightening trend amid rising inflation.
The Prayed finally took advantage of falling yields on Thursday and surged towards $1,720. XAUUSD remains relatively calm near that level on Friday and is holding on to modest weekly gains.
The Bitcoin it continues to move sideways near $23,000 after closing the previous two days largely unchanged. The ethereum rises towards $1,600 early on Friday, following Thursday’s 3.5% rise.
Source: Fx Street
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