Forex Today: Dollar consolidates gains ahead of Fed

Valeria Bednarik FXStreet

What you need to know on Monday, July 26:

The dollar retained its strength heading into the weekly close but was unable to extend gains. Appetite for high-yielding assets dented demand for the greenback, while US indexes closed at all-time highs. Government bond yields maintained the positive tone, and settled near the upper end of their weekly range, also reflecting a better market mood.

Data released on Friday indicated that the economic recovery continued at an uneven pace in July. Markit published the flash July PMIs. European indexes were mostly upbeat, while in the US and the UK the services sector contracted.

Majors remained range-bound at the end of the week, consolidating losses against their American rival, as the US Federal Reserve looms. Choppy trading will likely prevail ahead of Wednesday when the central bank will announce its decision on monetary policy. The focus is on tapering. The central bank will likely hint some action for the last quarter of the year.

Gold finished the week with modest losses just above the 1,800 mark. Crude oil prices posted a nice comeback by the end of the week, with WTI settling at $72.15 a barrel.

Dogecoin price fumbles the opportunity, but DOGE clings to bullish aspirations

Like this article? Help us with some feedback by answering this survey:

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.