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.

AUD/USD consolidates above 0.6950 amid bullish USD

AUD/USD consolidates during the Asian session on Thursday, trading just above 0.6950 as traders await further developments surrounding the Middle East crisis. The Pentagon reportedly ordered readiness for potential strikes against Iran. This keeps the geopolitical risk premium in play, which, along with hawkish FOMC Minutes on Wednesday and elevated US bond yields, supports the bullish US Dollar and caps the currency pair.

USD/JPY slips below 158.00 as bulls turn cautious amid JPY intervention fears

USD/JPY retreats further from a one-and-a-half-week top, touched the previous day, and slid below 158.00 during the Asian session on Thursday amid speculation that authorities will step in to prop up the Japanese Yen. Meanwhile, the US Dollar sits near an 18-month high, supported by Wednesday's hawkish FOMC Minutes and the risk of a further escalation of tensions in the Middle East. This might continue to act as a tailwind for the currency pair.

Gold hangs near two-month low; seems vulnerable around $4,100

Gold struggles to capitalize on the overnight bounce from a two-month low, trading with a mild negative bias around $4,100 during Thursday’s Asian session. Hawkish FOMC Minutes reaffirmed bets for at least one more rate hike by year-end. Adding to this, elevated US bond yields weigh on the non-yielding bullion. The US Dollar further benefits from geopolitical uncertainties and sits near an 18-month high, undermining the commodity.

Cryptocurrencies face new security risk as Ethereum researcher warns of potential ECDSA break

Ethereum (ETH) researcher Justin Drake has urged the crypto industry to begin preparing for a potential breakthrough that could undermine the cryptographic systems securing digital assets. In an X post on Wednesday, Drake called on the industry to calmly enter what he described as “bunker mode.”

The US 10-year just hit a 2002 high. Does it give the US Dollar its next leg?

In 2026, the US Dollar Index, which measures the Dollar against six major currencies, has risen on days when Federal Reserve rate expectations pushed Treasury yields up and barely moved on days when something else did. The last stretch of the 10-year yield's climb to its highest since 2002 was the second kind.

The UK 30-year gilt just hit a 1998 high. Is that good or bad for the British Pound?

The yield on the UK's 30-year government bond, or gilt, went through 6% on October 1 for the first time since early 1998, and on Monday the Pound was at its strongest against the Euro since June 2025. The gilt market's 28-year high is mostly someone else's. Since early May, the 30-year gilt yield has risen about 0.15 of a percentage point and the US 30-year about 0.7.