Here’s what you need to know on Tuesday, July 30:
Investors remain cautious following Monday’s turmoil in financial markets. Eurozone and German second-quarter gross domestic product (GDP) will be closely watched ahead of German Consumer Price Index (CPI) data for July on Tuesday. In the second half of the day, the Conference Board’s consumer confidence index for July and JOLTS job openings data for June will be the highlights of the U.S. economic calendar.
US Dollar PRICE This week
The table below shows the percentage change of the US Dollar (USD) against major currencies this week. The US Dollar was the strongest currency against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.30% | 0.08% | 0.79% | 0.08% | -0.18% | -0.16% | 0.32% | |
| EUR | -0.30% | -0.25% | 0.47% | -0.19% | -0.43% | -0.47% | 0.04% | |
| GBP | -0.08% | 0.25% | 0.72% | 0.03% | -0.17% | -0.20% | 0.28% | |
| JPY | -0.79% | -0.47% | -0.72% | -0.73% | -0.94% | -0.94% | -0.43% | |
| CAD | -0.08% | 0.19% | -0.03% | 0.73% | -0.23% | -0.27% | 0.24% | |
| AUD | 0.18% | 0.43% | 0.17% | 0.94% | 0.23% | -0.00% | 0.46% | |
| NZD | 0.16% | 0.47% | 0.20% | 0.94% | 0.27% | 0.00% | 0.49% | |
| CHF | -0.32% | -0.04% | -0.28% | 0.43% | -0.24% | -0.46% | -0.49% |
The heatmap shows percentage changes of major currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you choose the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change shown in the chart will represent the USD (base)/JPY (quote).
The US Dollar (USD) gained strength at the start of the week as market sentiment deteriorated on the back of rising geopolitical tensions. Meanwhile, investors might have adjusted their positions ahead of the Federal Reserve (Fed) monetary policy announcement on Wednesday. As major Wall Street indices closed mixed on Monday, the USD Index rose to its highest level in nearly 20 days and closed in positive territory. On Tuesday’s European morning, US stock index futures are trading marginally lower with the USD Index clinging to modest daily gains above 104.50. Meanwhile, the US 10-year Treasury bond yield remains marginally below 4.2% after posting small losses on Monday.
During Asian trading hours, data from Australia showed that Building Permits fell 6.5% on a monthly basis in June. This reading followed a 5.7% increase recorded in May and was worse than the market expectation of a 3% decline. AUD/USD showed no reaction to this data and was last seen trading slightly higher on the day above 0.6550.
EUR/USD The pair fell just a few pips short of 1.0800 on Monday but managed to find a foothold. The pair is fluctuating in a tight range around 1.0800 early Tuesday.
After falling towards 1.2800 and touching its weakest level in almost three weeks, GBP/USD staged a late rebound to close flat on Monday. The pair remains in a consolidation phase slightly above 1.2850 in the European morning.
After Monday’s indecisive action, USD/JPY gained bullish momentum in the Asian session on Monday. At the time of writing, the pair was up more than 0.6% on the day at 155.00. Early on Wednesday, the Bank of Japan is set to announce monetary policy decisions.
Gold The pair failed to make a decisive move in either direction on Monday amid a lack of activity in the US Treasury yields. Early Tuesday, the XAU/USD is clinging to small daily gains around $2,390.
GDP FAQs
A country’s gross domestic product (GDP) measures the growth rate of its economy over a given period of time, usually a quarter. The most reliable figures compare GDP with the previous quarter (for example, Q2 2023 with Q1 2023) or with the same period a year earlier (for example, Q2 2023 with Q2 2022).
Annualized quarterly GDP figures extrapolate the quarter’s growth rate as if it were constant for the rest of the year. However, they can be misleading if temporary shocks affect growth in one quarter but are unlikely to last the entire year, as was the case in the first quarter of 2020 with the outbreak of the coronavirus pandemic, when growth plummeted.
A higher GDP result is usually positive for a nation’s currency, as it reflects a growing economy, which is more likely to produce goods and services that can be exported, as well as attract more foreign investment. Similarly, when GDP falls it is usually negative for the currency.
When an economy grows, people tend to spend more, which causes inflation. The country’s central bank then has to raise interest rates to combat inflation, with the side effect of attracting more capital inflows from global investors, which helps the local currency appreciate.
When an economy grows and GDP increases, people tend to spend more, which causes inflation. The country’s central bank then has to raise interest rates to combat inflation. Higher interest rates are negative for Gold because they increase the opportunity cost of holding Gold versus putting the money in a cash deposit account. Therefore, a higher GDP growth rate is usually a bearish factor for the price of Gold.
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.
