Forex Today: Focus remains on the ECB Forum and US jobs

Pablo Piovano FXStreet

The Greenback dipped to new multi-year troughs before attempting a mild rebound on Tuesday, as investors continued to assess the participation of Chief Powell at the ECB Forum, while fresh tensions emerged on the trade front in anticipation of the July 9 tariffs deadline.

Here's what to watch on Wednesday, July 2:

The US Dollar Index (DXY) added to the ongoing lower leg and receded to new multi-year lows in the sub-97.00 neighbourhood. The usual weekly MBA Mortgage Applications are due, followed by Challenger Job Cuts, the ADP Employment Change report, and the EIA’s weekly report on US crude oil stockpiles.

EUR/USD halted its multi-day positive streak shortly after reaching fresh yearly peaks above the 1.1800 level. The ECB Forum on Central Banking will precede the release of the EMU's Unemployment Rate.

GBP/USD resumed its decline soon after hitting new YTD tops near 1.3790, just to end the day with humble gains in the low 1.3700s. Next on tap across the Channel will be the BoE’s DMP Survey and Credit Conditions Survey, seconded by the final S&P Global Services PMI, all due on July 3.

USD/JPY remained on the back foot and retreated to the 142.70 region, or four-week lows. Next on the Japanese docket will be the weekly Foreign Bond Investment figures on July 3.

Following its risk-related peers, AUD/USD hit new tops just below the 0.6600 barrier before succumbing to some modest downside pressure. The Ai Group survey is due alongside Building Permits, Retail Sales and Private House Approvals.

WTI prices maintained their multi-day erratic performance on Tuesday, always around the $65.00 mark per barrel as traders remained prudent ahead of the OPEC+ meeting and rising expectations surrounding the trade front.

Gold prices rose markedly and revisited the $3,360 zone per troy ounce, or multi-day highs, following the increasing caution around the US trade policy and the vacillating Greenback. Silver prices extended Monday’s uptick to two-day highs around $36.60 per ounce.

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Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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