Forex Today: Central bankers will be in the spotlight

The Greenback traded with marked losses at the start of the week, as market participants remained cautious ahead of Chief Powell's and another central banker's speech at the ECB Forum in Portugal, while also keeping an eye on trade developments and the likelihood of additional Fed easing.

Here's what to watch on Tuesday, July 1:

The US Dollar Index (DXY) added to the ongoing lower leg and receded to new multi-year lows in the sub-97.00 neighbourhood. The final S&P Global Manufacturing PMI is due, followed by the ISM Manufacturing PMI, JOLTs Job Openings, the RCM/TIPP Economic Optimism Index, the Dallas Fed Services Index, Construction Spending figures and the API’s weekly report on US crude oil inventories. In addition, Chair Powell will speak at the ECB Forum in Sintra (Portugal).

EUR/USD extended its march north and hit fresh 2025 peaks around 1.1780. The German labour market report will be the primary focus, followed by the final HCOB Manufacturing PMI in both Germany and Europe, the advanced Inflation Rate in the euro bloc, and the ECB Forum on Central Banking.

Despite the continued selling bias in the Greenback, GBP/USD managed to trade with humble gains in the low-1.3700s. The Nationwide Housing Prices are next on tap, seconded by the final S&P Global Manufacturing PMI and the speech by the BoE’s Bailey.

USD/JPY lost momentum and slipped back to the 143.70 zone, or two-day lows, extending further its rejection from last week’s monthly highs around 148.00. The Tankan survey is due alongside the final Jibun Bank Manufacturing PMI and the Consumer Confidence gauge. The BoJ’s Ueda will also speak at the ECB Forum.

AUD/USD resumed its uptrend and reached YTD peaks around the 0.6580 zone. The Commodity Prices and the final S&P Global Manufacturing PMI are next on tap in Australia.

Prices of WTI remained depressed and hovered around the $65.00 mark per barrel after alleviating geopolitical concerns.

Gold prices increased due to further weakness in the US Dollar, surpassing the key$3,300 mark per troy ounce. Silver prices advanced modestly, trespassing the key $36.00 mark per ounce.