Dollar index shows some recovery due to tarriffs uncertainty

Gregor Horvat Wavetraders

As you know, stock markets were stable last week, supported by strong jobs data and the US passing a major vehicle bill—referred to as a “big beautiful bill.” However, we did see some retracement toward the end of the week, likely due to profit-taking ahead of the US holiday on Friday.

Looking ahead, sentiment could shift this week with the July 9th tariff deadline approaching. There are already fresh threats regarding tariffs, especially if some countries fail to reach an agreement with the US, EU in particular. Volatility could pick up across both FX and equities then. Also, a few hours back, Trump also issued a new threat on social media, saying he would impose an extra 10% tariff on any country aligning with anti-American BRICS policies.

As for the dollar, it’s moving higher alongside US yields, but the Dollar Index shows overlapping price action from the most recent close. That suggests resistance may not be far off—we're watching the 97.50 zone closely. If reached, the market could slow down up there as part of a W-X-Y correction.

Get Full Access To Our Premium Elliott Wave Analysis For 14 Days. Click here.

Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.