The dollar extended its bearish trend to fresh four-month lows in response to another currency market intervention by the BoJ, increased bets for rate cuts and the broader more positive tone in risk-associated assets. On Thursday, the ECB will likely keep its policy rates unchanged, while investors are expected to keep a close eye on President Lagarde for clues on the next rate cut.
Here’s what you need to know on Thursday, July 18:
Further weakness sent the Dollar Index (DXY) into the region below 104.00, or four-month lows, helped by a lack of traction in US yields. The usual weekly initial jobless claims and the Philly Fed manufacturing index are scheduled for July 18, followed by the CB leading index and long-term net TIC flows. Additionally, the Fed’s Logan is also expected to speak.
EUR/USD rose to multi-week highs around 1.0950 in response to increased selling pressure on the Dollar. On July 18, the ECB is expected to leave its interest rates unchanged, while attention will also be on President Lagarde’s press conference.
GBP/USD finally broke the 1.3000 barrier for the first time since July 2023. The release of the UK labour market report should take centre stage on the domestic agenda on July 18.
USD/JPY fell further in response to another suspected intervention in the currency space by the BoJ. The trade balance and weekly foreign bond investment figures will be released on July 18.
The AUD/USD posted its third consecutive daily decline amid further weakness in the commodity universe and concerns over Chinese demand. The ever-relevant Australian labour market report will be in the spotlight on July 18.
A weaker dollar, renewed geopolitical tensions and a larger-than-expected weekly drop in US crude oil inventories pushed WTI prices to three-day highs near the $83.00 per barrel mark.
Gold prices rose to a record high near $2,490 per troy ounce before correcting somewhat towards the end of the session. Silver sold off and challenged the $30.00 per ounce mark, or two-week lows.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
