Forex Today: Dollar is king again, Boris Johnson becomes PM, and the euro gets critical data

The US dollar has been consolidating Tuesday's gains.
Boris Johnson enters 10 Downing Street and he will announce his pick for Chancellor.
EZ PMIs are in the limelight ahead of Thursday's all-important ECB meeting.

Yohay Elam FXStreet

Here is what you need to know on Wednesday, July 24th, European session:
- The USD has maintained the gains it achieved on Tuesday. Speculation about the Fed decision due out in one week seems to fuel demand. Also, the IMF's downgrade of global growth forecasts has also supported the greenback.
- The US and China have announced they will resume face-to-face high-level negotiations next week. However, US Commerce Secretary Wilbur Ross has downplayed the chances of achieving an accord.
- AUD/USD has dropped more than other currencies amid weak Australian PMIs.
- UK: Boris Johnson becomes PM today, and speculation mounts about who will become Chancellor of the Exchequer. Outgoing Chancellor Phillip Hammond – who was respected by markets – is expected to step down. The pound remains depressed.
- Europe: Tension rises ahead of the European Central Bank's meeting on Thursday. Most expect the ECB to signal a rate cut in September and open the door to new QE. However, some speculate that President Mario Draghi and his colleagues may slash rates already now. Forward-looking PMIs will provide additional input.
- Oil prices remain under pressure ignoring the ongoing stand-off in the Gulf and a private sector report that has shown a drop in inventories.
- Bitcoin continues falling after losing $10,000 once again. Other cryptos are also on the back foot.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

GBP/USD weakens to two-week lows near 1.3520

GBP/USD trades on the back foot, returning to the low 1.3500s, or two-week troughs, on Tuesday. Cable’s bearish price action follows decent gains in the Greenback at the time when investors assess latest US data releases and the persistent uncertainty in the US-Iran crisis.

EUR/USD remains offered; breaks below 1.1600

EUR/USD now accelerates its daily correction, breaching below the key 1.1600 support level on Tuesday. The pair’s daily correction comes on the back of a decent bounce in the US Dollar despite disappointing US data releases and amid persistent geopolitical concerns.

Gold flirts with multi-week lows near $4,300

Gold accelerates its correction and recedes toward the key $4,300 mark per troy ounce on Tuesday. The yellow metal’s persistent decline comes in response to the solid performance of the US Dollar and a sharp move higher in US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP struggle to extend gains despite ETF inflows

Bitcoin stalls while holding above $78,000 support as ETF inflows return. Ethereum takes a breather around $2,450 amid sustained institutional support. XRP remains pressured as the 200-day EMA provides immediate support.

Global bond market sell off haunts markets

Global sovereign bonds are selling off as we start a new month. The UK is, unsurprisingly, taking the biggest hit. Two and 10-year yields rose by 10 basis points at one point on Tuesday, and are currently higher by 7 and 8bps respectively.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.