Forex Today: Focus remains on US inflation

Pablo Piovano FXStreet

The Greenback collapsed in response to the softer-than-expected US inflation readings in June, at the time when investors now see the Fed cutting rates as soon as at its September gathering.

Here is what you need to know on Friday, July 12:

The USD Index (DXY) deflated to multi-week lows and visited the 104.00 region in the wake of disappointing US CPI data and declining US yields. Producer Prices and the preliminary Michigan Consumer Sentiment gauge will take centre stage on July 12.

EUR/USD rose further and managed to finally retest the 1.0900 region, although that move fizzled out somewhat afterwards. German Wholesale Prices and Current Account results are expected on July 12.

GBP/USD advanced to levels last seen a year ago near 1.2950 following the sell-off in the Greenback. There are no scheduled releases in the UK on July 12.

USD/JPY receded to monthly lows and approached the 157.00 zone following another suspected FX intervention move by Japanese officials. The final Industrial Production results will be released on July 12.

AUD/USD extended its monthly recovery and climbed to levels just pips away from the 0.6800 hurdle. The Australian calendar will be empty on July 12.

The weaker Dollar and market chatter around rate cuts by the Fed prompted prices of WTI to add to Wednesday’s gains beyond the $83.00 mark per barrel.

Prices of Gold advanced markedly and surpassed the $2,420 mark per ounce troy amidst the Dollar’s sell-off, diminishing yields and increasing rate cut bets. By the same token, Silver improved to the vicinity of the $32.00 mark per ounce, or six-week highs.

Author

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.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.