Forex Today: Focus shifts to the FOMC Minutes

Pablo Piovano FXStreet

The Greenback could not maintain its initial strong momentum, finishing the day with only a slight change from Monday’s closing levels. Meanwhile, investors remained watchful of events on the trade front after President Trump reignited concerns following tariffs on Japan and south Korea. Going forward, the FOMC Minutes are expected to be the focal point of attention.

Here's what to watch on Wednesday, July 9:

The US Dollar Index (DXY) advanced to multi-day tops, approaching the 98.00 hurdle amid rising US yields. The release of the FOMC Minutes takes centre stage, seconded by the weekly MBA Mortgage Applications and the EIA’s report on US crude oil inventories.

The EUR/USD recovered from its negative start to the week and stabilised above the 1.1700 barrier. The ECB’s Lane and De Guindos are due to speak amid an otherwise empty euro docket.

GBP/USD navigated a volatile range, easing to fresh two-week lows just to regain momentum and end the day around the 1.3600 neighbourhood. The BoE’s Financial Stability Report will be at the centre of the debate across the Channel.

USD/JPY added to Monday’s gains and rose to new multi-week highs near the 147.00 barrier. Machne Tool Orders will be the salient event in Japan.

The unexpected hawkish stance by the RBA provided support for the Aussie, propelling AUD/USD back above the 0.6500 mark after three consecutive days in the red. The final Building Permits and Private House Approvals prints are due seconded by speeches by the RBA’s Hauser and Hunter.

Prices per barrel of WTI rose to monthly highs near the $69.00 mark, backed by prospects of stronger demand and lower US production.

Gold prices remained on the back foot around the $3,300 region per troy ounce as investors continued to gauge news from the trade front, while the firm dollar and rising yields also weighed on the precious metal. Silver prices, in the meantime, added to Monday’s pullback, settling below the $37.00 mark per ounce.

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.

GBP/USD: Downward-sloping trendline near 1.3470 remains key barrier

The British pound faces selling pressure against its major currency peers, trading 0.1% lower at around 1.3420 against the US Dollar during the European trading session on Tuesday.

EUR/USD flatlines above 1.1500, awaits US jobs data

EUR/USD holds steady around 1.1505 in European trading hours on Tuesday. Markets remain cautious ahead of a slew of US jobs data, starting with the JOLTS Job Openings Survey later today. However, the downside appears capped by hot Eurozone inflation in July, bolstering the case for a European Central Bank rate hike at the next meeting.

Gold holds steady above $4,050; hawkish Fed bets favor bearish traders

Gold remains confined in a range below the $4,100 mark through the early European session as traders opt to wait for further developments surrounding the Middle East crisis. Meanwhile, the uncertainty over US-Iran peace talks continues to act as a tailwind for the safe-haven US Dollar.

Aave: Bearish RSI divergence risks a 20% drop despite steady DeFi deposits

Aave (AAVE) extends a mild near-term recovery on Tuesday, holding above its 50-day Exponential Moving Average at $90.80. Aave protocol’s V3 deployment on Monad blockchain recorded over $500 million in deposits over the last month, reflecting increased user adoption.

US JOLTs report in focus

In the US, the June JOLTs report will be in the spotlight. Job openings have increased modestly this year, which has historically predicted rising wage cost pressures ahead. June trade balance data will also be released in the afternoon and the preliminary reading pointed towards a stable trade deficit from May. The Fed's Schmid (non-voter, hawk) will be on the wires overnight.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.