|

Forex Today: BoJ and the Fed take centre stage

The FX universe navigated an inconclusive session on Tuesday amidst rising prudence ahead of the BoJ and Fed policy meetings on July 31. While the Fed is expected to keep rates on hold, Chief Powell could shed further details regarding a potential rate cut in September. Consensus, in the meantime, appears pretty divided when it comes to the BoJ.

Here is what you need to know on Wednesday, July 31:

The USD Index (DXY) gave away initial gains and settled in the mid-104.00s against the backdrop of further decline in US yields across the curve. The Fed meets on July 31 and is seen keeping rates unchanged. Extra releases on the US docket include the weekly Mortgage Applications, the Employment Cost index, Pending Home Sales and the ADP Employment Change.

EUR/USD kept the bearish performance and briefly pierced the 1.0800 support to print four-week lows just to regain some balance afterwards. Germany’s Retail Sales and the labour market report are due on July 31 seconded by preliminary Inflation Rate in the broader euro area.

GBP/USD remained well on the defensive in the low-1.2800s as investors continued to price in a potential rate cut by the BoE on August 1. There are no data releases scheduled on the UK calendar on July 31.

Renewed buying interest in the Japanese yen prompted USD/JPY to fade the earlier uptick and refocus on the downside around the 153.30 zone. The BoJ will decide on rates on July 31. In addition, flash Industrial Production is due along with Retail Sales, Consumer Confidence and Housing Starts.

AUD/USD seems to have entered a consolidative theme near 0.6530, always on the back of Chinese concerns and persistent weakness in the commodity space. The Inflation Rate, Housing Credit, Retail Sales and the RBA’s Monthly CPI Indicator are all expected on July 31.

Another negative session dragged WTI prices to fresh lows in the sub-$75.00 region per barrel, as traders assessed incessant demand concerns from China.

Gold prices printed acceptable gains and approached the $2,400 mark per ounce troy amidst the irresolute price action in the US dollar and declining yields. Silver regained some composure and reversed Monday’s pessimism, reclaiming the area beyond the $28.00 barrier per ounce.

Author

Pablo Piovano

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

More from Pablo Piovano
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD moves sideways below 1.1800 on Christmas Eve

EUR/USD struggles to find direction and trades in a narrow channel below 1.1800 after posting gains for two consecutive days. Bond and stock markets in the US will open at the usual time and close early on Christmas Eve, allowing the trading action to remain subdued. 

GBP/USD keeps range around 1.3500 amid quiet markets

GBP/USD keeps its range trade intact at around 1.3500 on Wednesday. The Pound Sterling holds the upper hand over the US Dollar amid pre-Christmas light trading as traders move to the sidelines heading into the holiday season. 

Gold retreats from record highs, trades below $4,500

Gold retreats after setting a new record-high above $4,520 earlier in the day and trades in a tight range below $4,500 as trading volumes thin out ahead of the Christmas break. The US Dollar selling bias remains unabated on the back of dovish Fed expectations, which continues to act as a tailwind for the bullion amid persistent geopolitical risks.

Bitcoin slips below $87,000 as ETF outflows intensify, whale participation declines

Bitcoin price continues to trade around $86,770 on Wednesday, after failing to break above the $90,000 resistance. US-listed spot ETFs record an outflow of $188.64 million on Tuesday, marking the fourth consecutive day of withdrawals.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Avalanche struggles near $12 as Grayscale files updated form for ETF

Avalanche trades close to $12 by press time on Wednesday, extending the nearly 2% drop from the previous day. Grayscale filed an updated form to convert its Avalanche-focused Trust into an ETF with the US Securities and Exchange Commission.