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Forex Today: Key US data prompt some caution

The FX universe traded mostly within a range bound theme, as investor assessed the political front in the US, while cautiousness kicked in ahead of important data releases due later in the week.

Here is what you need to know on Tuesday, July 23:

The USD Index (DXY) saw its recent uptick somewhat curtailed, faltering once again around the 200-day SMA near 104.40. Existing Home Sales, the Richmond Fed Manufacturing Index and the weekly report on crude oil inventories by the API are all due on July 23.

EUR/USD regained some acceptable traction and managed to revisit the 1.0900 neighbourhood. On July 23, the European Commission will publish its Consumer Confidence gauge. In addition, the ECB’s Lane will also speak.

GBP/USD picked up pace and reversed two daily pullbacks in a row, shifting its attention back to the 1.3000 region. The next data release of note in the UK will be the preliminary PMIs for the month of July on July 24.

The erratic performance in the greenback and higher US and Japanese yields left USD/JPY with modest losses around the 157.00 zone. The advanced Jibun Bank PMIs are next in “The Land of the Rising Sun” on July 24.

AUD/USD extended its bearish move further south of 0.6700 the figure on the back of lower commodities and disheartening news from China. Coming up next on the Australian docket will be the Judo Bank flash PMIs.

Demand concerns and easing geopolitical fears weighed on WTI and dragged prices to fresh lows below the $78.00 mark per barrel.

Gold prices remained on the defensive and broke below the key $2,400 mark per ounce troy. Same performance saw Silver prices retreat for the fourth straight day and print new monthly lows near $28.70 per ounce.

Author

Pablo Piovano

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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