Here is what you need to know on Friday, July 22:

Although the euro gathered strength following the European Central Bank's (ECB) decision to hike its key rates by 50 basis points, it lost its bullish momentum early Friday amid the negative shift witnessed in risk sentiment. The US Dollar Index edges higher toward 107.00 in the European session and US stock index futures are down between 0.3% and 0.8%. S&P Global will release the flash Manufacturing and Services PMI surveys for Germany, the euro area, the UK and the US on Friday. The Canadian economic docket will feature May Retail Sales data.

In addition to the double-dose rate increase, the ECB unveiled its new anti-fragmentation tool called the Transmission Protection Instrument (TPI). The bank also abandoned forward guidance by noting that every meeting will be live and that they will assess the data when making a decision. ECB President Christine Lagarde refrained from sharing key details regarding the TPI during the press conference. Meanwhile, Italian President Sergio Mattarella has dissolved the Italian parliament, triggering a snap election on September 25.

After having advanced toward 1.0300, EUR/USD erased a portion of its daily gains and closed in positive territory near 1.0250 on Thursday. The pair trades near 1.0200 early Friday.

GBP/USD closed virtually unchanged near 1.2000 on Thursday but started to push lower toward 1.1950 on Friday. The data published by the UK's Office for National Statistics showed earlier in the day that Retail Sales declined by 0.1% on a monthly basis in June. In 12 months to June, sales were down 5.8%, compared to the market expectation for a contraction of 5.3%.

Pressured by the sharp decline witnessed in US Treasury bond yields, USD/JPY fell to its lowest level in over a week near 137.00 but managed to reverse its course ahead of the weekend. With the benchmark 10-year US Treasury bond yield holding in positive territory following Thursday's 5% drop, the pair rises toward 138.00. The Japanese Finance Minister, Shunichi Suzuki, said on Friday that hiking rates could knock the economy's recovery, signalling support for the Bank of Japan's stance to keep monetary stimulus despite a global tightening trend amid rising inflation.

Gold finally capitalized on falling yields on Thursday and rose toward $1,720. XAUUSD stays relatively quiet near that level on Friday and clings to modest weekly gains.

Bitcoin continues to move sideways near $23,000 after having closed the previous two days virtually unchanged. Ethereum pushes higher toward $1,600 early Friday following Thursday's 3.5% gain.

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

EUR/USD rises above 0.9700 amid persistent dollar weakness

EUR/USD rises above 0.9700 amid persistent dollar weakness

EUR/USD has gathered bullish momentum and advanced to a fresh daily high above 0.9700 in the American session on Wednesday. The renewed selling pressure surrounding the greenback amid improving market mood seems to be fueling the pair's rebound.

EUR/USD News

GBP/USD extends recovery beyond 1.0850 in volatile session

GBP/USD extends recovery beyond 1.0850 in volatile session

Following an initial spike to 1.0850 on BoE's intervention in gilt markets, GBP/USD lost nearly 300 pips. With the dollar losing its strength after Wall Street's opening bell, however, the pair reaches fresh daily highs above the level. 

GBP/USD News

Gold: Sharp bounce falling short of indicating a trend change

Gold: Sharp bounce falling short of indicating a trend change

XAUUSD bounced from a fresh two-year low of $1,614.81 a troy ounce as dip buyers appeared on the dollar’s extreme overbought conditions. The bright metal peaked at $1,661.57, its highest for the week, holding above the $1,650 mid-US afternoon.

Gold News

Cardano price ignored the Vasil hard fork, but here is a promising bullish pattern

Cardano price ignored the Vasil hard fork, but here is a promising bullish pattern

ADA has a lot to prove to investors amid questions over frequent declines despite increased development activities. The smart contracts token is trading slightly below its price level before the Vasil hard fork.

Read more

Invesco Nasdaq Trust (QQQ) ETF hopes for pivot but faces Apple headwinds

Invesco Nasdaq Trust (QQQ) ETF hopes for pivot but faces Apple headwinds

Stocks remain challenged this morning by competing news as overall volatility levels remain close to recent highs. A brief attempt at a rally on Tuesday failed miserably, and now the market opens negatively after having attempted to move higher during the premarket.

Read more

Forex MAJORS

Cryptocurrencies

Signatures