Forex Today: Geopolitics and Canadian jobs steal the show

Pablo Piovano FXStreet

The US Dollar (USD) navigated a narrow range on Thursday, building on the previous day’s losses and briefly reaching multi-day lows. In the meantime, geopolitical tensions continued to make the rounds, while investors seemed to have largely ignored the cautious tone in the FOMC Minutes on Wednesday.

Here is what you need to know on Friday, July 10:

The US Dollar Index (DXY) had kept the bearish tone for the second straight day on Thursday, although it managed to bounce off earlier lows and dispute the 101.00 region afterward. Next on tap on the USD docket will be the release of the always-relevant inflation figures tracked by the Consumer Price Index (CPI) on July 14.

EUR/USD has clinched its second consecutive daily advance on Thursday, although gains appear to have met a tough nut to crack around 1.1450. Final inflation data in Germany are due alongside the speech by the ECB’s Vujcic.

GBP/USD could not sustain the early move to three-week tops around 1.3430, coming under pressure and challenging once again the 1.3400 neighbourhood. The next event across the Channel will be the publication of the BRC Retail Sales Monitor on July 14.

The USD/JPY’s weekly recovery has stalled on Thursday amid renewed downside bias in the Greenback and steady FX intervention concerns. Producer Prices will be the sole release in the 'Land of the Rising Sun'.

AUD/USD has added to Wednesday’s small advance and approached the 0.6950 zone, always on the back of fresh selling interest hurting the buck. Data-wise in Oz, Westpac will publish its Consumer Confidence gauge on July 14.

USD/CAD has slipped back toward the 1.4150 zone, the lower end of its current multi-day consolidative phase, down for the fourth day in a row. Wrapping up the week, the Canadian labour market report will take centre stage.

Prices of the barrel of WTI reversed five consecutive daily advances, returning to the $72.00 mark per barrel and below its critical 200-day SMA.

Prices of Gold have left behind three straight daily losses and reclaimed the area beyond the $4,100 mark per troy ounce, always amid fresh weakness in the US Dollar and persistent geopolitical jitters.

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 clings to gains near 1.3400

GBP/USD retreats after reaching a three-week high above 1.3430, challenging the 1.3400 yardstick on Thursday. Although easing political uncertainty in the UK helps the quid limit its downside, escalating tensions in the Middle East support the Greenback, keeping Cable under scrutiny.

EUR/USD faces resistance around 1.1450

EUR/USD keeps the bid bias although it seems to have met a tough hurdle around 1.1450 on Thursday. The pair’s advance follows the bearish tone in the US Dollar despite escalating tensions in the Middle East and a broad-based cautious stance from market participants.

Gold flirts with two-day highs, approaches $4,130

Gold stages a modest rebound on Thursday, setting aside a three-day losing streak and managing to surpass the $4,100 mark per troy ounce. However, steady geopolitical tensions have revived concerns over persistently high global inflation, reinforcing expectations of higher rates across the board and somewhat curtailing the yellow metal’s upside potential.

Bitcoin stalls as mixed ETF flows, renewed US-Iran tensions cap upside

Bitcoin trades at $63,000 on Thursday, recovering slightly after facing rejection near $64,000. Renewed geopolitical uncertainty has dampened risk appetite, limiting BTC upside potential.

Japan may be changing its Yen strategy, but markets don’t look scared

Japan may be changing its intervention playbook, but that might not be enough to rescue the battered Yen. With USD/JPY hovering at four-decade highs, the currency’s weakness is being driven less by speculative pressure and more by a powerful structural force: the wide US-Japan rate gap.

Bye, forward guidance: How to trade when central banks choose silence

Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance.