Forex Today: USD cheers Fed’s policy repricing, Gulf tensions rise, and Oil surges
|- US dollar index rises on falling odds of aggressive Fed rate cuts.
- Oil surges on escalating Gulf tensions.
- All eyes on trade and geopolitical developments.
Here is what you need to know to start your day on Monday, July 22nd, European session:
- US dollar firmed up across the board on a likely smaller Fed rate cut, Gulf tensions stoked safe-haven demand, Treasury yields were soggy, Asian equities slipped.
- Japan's Abe won the upper house election but fell short of 2/3rd ‘Super Majority’ to needed to amend the nation's pacifist constitution, USD/JPY re-attempted 108.00.
- Trade: Some Chinese companies are seeking new purchases of US agricultural products, S. Korea-Japan trade concerns loom, China to impose an anti-dumping tax on stainless steel from Indonesia, EU, Japan, S. Korea.
- UK: All eyes on new UK PM election. FinMin Hammond to quit if Johnson becomes the PM. Cable hovered around 1.2500.
- Oil prices rallied on escalating UK-Iran tensions over 'hostile act' of UK tankers seizure by Iran. The UK weighing response to Iran Gulf crisis with few good options.
- Gold was lifted by Gulf tensions, but upside capped by dollar gains.
- Cryptocurrencies consolidated in tight ranges. Bitcoin unmotivated below 11k.
Key events to watch
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