Forex Today: Dollar eases, ECB looms

Valeria Bednarik FXStreet

What you need to know on Thursday, July 22:

The market mood improved and the greenback shed some ground, although no critical level was broken. The American currency edged marginally lower against most major rivals as global indexes closed in the green. US government bond yields were sharply up, also signalling decreased demand for safety.

The EUR/USD pair hovers around the 1.1800 level, as caution prevails ahead of the European Central Bank monetary policy decision. The ECB is widely anticipated to maintain its monetary policy unchanged, although the general perception is that policymakers will maintain a dovish stance.

The GBP/USD pair is up to the 1.3720 price zone, despite persistent Brexit tensions. The EU rejected the UK’s demand for a new approach to the Northern Ireland Protocol. UK Prime Minister Boris Johnson said that there are practical steps they can take to do that, but it does not seem the Union will convene to any change.

Commodity-linked currencies were also up, with the aussie being the weakest amid discouraging local data.

Gold retreated further, with spot ending the day at $1,805 a troy ounce. Crude oil prices recovered, with WTI up to $70 a barrel.

Ethereum price holds strong as ETH bulls target $3,000

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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.

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Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June FOMC meeting landed mid-round-trip, describing a world that had already stopped existing.