• US Dollar holds its own as investors await Federal Reserve decision 31st July.
  • Markets priced 30bp of easing at the 31 July meeting (from 40bp the previous day).

Forex on Friday was dictated by headlines around the Federal reserve expectations and geopolitics with respect to Iran, the UK and the US. The Dollar in the DXY was moving between 97.29 and 97.07 while 10-year yields rose from 2.04% to 2.06%. There were gains in WTI +37c at $56  on the news that Iranian guards seized the British Stena Impero tanker in the Strait of Hormuz Friday.

Looking around, U.S. stocks ended lower with the S&P500 ended lower 0.6%, also on the back of heightened tensions whereby major news hit the wires announcing that Iran had seized a British oil tanker. Then, the dollar and rates were trading higher when there were reports that dialled down the Fed NY President Williams' prior dovish comments. 

"US 2yr treasury yields rose from 1.78% to 1.83%, while 10yr yields rose from 2.04% to 2.06%. Markets priced 30bp of easing at the 31 July meeting (from 40bp the previous day), driven by a clarification from the NY Fed as well as Bullard’s comments," analysts at Westpac explained, "Fed dove Bullard said an easing now would be insurance against a slowdown, but favours a 25bp cut (rather than 50bp), and doesn't expect the Fed will be entering into an easing cycle," analysts at Westpac explained. 

Currency action 

EUR/USD was under pressure falling from 1.1270 to 1.1204 as markets discounted the likelihood of a 50 basis point cut while GBP/USD fell from 1.2544 to a low of 1.2476 on better prospects of an orderly Brexit. In early Asia today, the news that the EU us looking to thrash out a new deal with the UK sent sterling on a rally, of which was sold back into.  USD/JPY rose from 107.50 to 107.97 while the Aussie dropped from 0.7075 to 0.7038. The Kiwi was moving from 0.6790 to 0.6759. 

Key notes from Wall Street:

Wall Street's benchmarks sag on dialled back Fed-cut expectations

 

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD drops towards 7000 amid resurgent USD demand

AUD/USD drops towards 7000 amid resurgent USD demand

AUD/USD is easing back towards 0.7000,  fading the rebound led by China's central bank LPR rate cut. A US dollar rebound, despite improving mood, weighs heavily on the aussie. The pair ignores the uptick in the S&P 500 futures. 

AUD/USD News

EUR/USD skids to near 1.0550 as risk-on impulse fades, Eurozone data eyed

EUR/USD skids to near 1.0550 as risk-on impulse fades, Eurozone data eyed

The EUR/USD pair has witnessed a minor fall after breaching the early Asian session’s consolidation formed in a narrow range of 1.0579-1.0588 as the risk-off impulse rebounded. The asset has slipped to near 1.0550 and is expected to remain uncertain.

EUR/USD News

Gold bulls recapture 200-DMA, more gains likely? Premium

Gold bulls recapture 200-DMA, more gains likely?

Gold Price is headed for the first weekly gain in five weeks this Friday, despite posting small losses, in the wake of a sharp rebound in the US dollar. The dollar recovers its ground even though risk sentiment remains in a fairly better spot, with the S&P 500 futures up 0.65% on the day. 

Gold News

How to trade the next 20% upswing in Binance Coin price

How to trade the next 20% upswing in Binance Coin price

Binance Coin price is on a recovery rally and shows promise of a further uptrend. Adding credence to this run-up is the price inefficiency that is likely to propel BNB higher. Binance Coin price crashed to $205 on May 13 as the crypto markets crumbled due to the LUNA-UST debacle.

Read more

Tesla regains $700 despite cut from S&P 500 ESG Index

Tesla regains $700 despite cut from S&P 500 ESG Index

Tesla's stock slips as it is kicked out of the S&P 500 ESG index. Elon Musk reacts aggressively, calling it a scam. Growth fears dominated and weighed on the overall market mood, leading to a negative close on major Wall Street indices. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures