Forex Today: All the attention shifts to Powell and Lagarde

The Greenback managed to stage a comeback after a pessimistic start to the week amidst a generalized appetite for the risk complex and rising prudence prior to the speech by Chair Powell, and the ECB’s Lagarde on Tuesday.

Here is what you need to know on Tuesday, July 2:

The USD Index (DXY) left behind two consecutive sessions of losses and refocused on the key 106.00 barrier. The Fed’s Chair J. Powell will participate at an event at the ECB Forum in Portugal. On the docket, the RCM/TIPP Economic Optimism Index is only due on July 2.

EUR/USD kept its constructive stance well in place and rose to three-week tops around 1.0780 as investors assessed the results from the French snap elections on Sunday. On July 2, preliminary Inflation Rate in the euro bloc is expected prior to the speech by the ECB’s C. Lagarde at the bank’s forum in Sintra (Portugal).

GBP/USD gave away an earlier move to the area just past the 1.2700 hurdle on the back of the resumption of the buying interest in the US Dollar towards the end of the NA session. There will be no data releases across the Channel on July 2.

USD/JPY advanced further and reached new highs in the proximity of the 162.00 region. The Japanese docket will be empty on July 2.

The resurgence of the downward bias in AUD/USD left the pair navigating within the so far unchanged consolidative theme around 0.6650. The RBA Minutes are only expected in Oz on July 2.

Rising optimism regarding the start of the US driving season and supply fears in the second half of the year lifted WTI prices to new highs north of the $83.00 mark per barrel.

Gold prices remained stuck within their recent range near the $2,330 zone per ounce troy, while Silver prices rose for the third session in a row, although still below the key $30.00 mark per ounce.