Forex Today: Markets’ attention shifts to data and Fedspeak

Pablo Piovano FXStreet

The Greenback managed to regain some balance amidst the broad-based small pullback in the risk complex, as investors started to gear up for US data and the ECB interest rate decision.

Here is what you need to know on Tuesday, July 16:

The USD Index (DXY) reclaimed some ground lost and printed humble gains around the low-104.00s. The release of Retail Sales for the month of June will take centre stage on July 16 ahead of Business Inventories and the NAHB Housing Market Index. In addition, the Fed’s Kugler is due to speak.

EUR/USD came under some selling pressure soon after rising to fresh monthly highs around 1.0920. On July 16, the ECB will publish its Bank Lending Survey, seconded by the release of the Economic Sentiment tracked by the ZEW institute in the euro area and Germany.

GBP/USD gave away part of the recent strong gains, although a test of 1.3000 appears just around the corner. The UK docket is empty on July 16.

USD/JPY traded in an inconclusive fashion amidst modest gains in the greenback and mixed US yields. The Tertiary Industry Index is expected on July 16.

AUD/USD failed to retest the 0.6800 mark and retreated for the first time after four consecutive daily gains. There are no data releases scheduled in Oz on July 12.

Small gains in the greenback in combination with poor GDP data from China weighed on traders and dragged WTI prices below the $82.00 mark per barrel, or three-day lows.

Gold prices extended its march north and approached the area of record highs near $2,440 per ounce troy. Silver, on the other hand, added to Friday’s losses and retreated modestly to the vicinity of the $30.00 zone 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 extends the drop to 1.3360

GBP/USD builds on Monday’s decline and briefly clinches five-day lows near 1.3360 on Tuesday. Cable’s extra pullback follows the better tone in the Greenback as uncertainty in the Middle East prompts investors to adopt a cautious stance. Meanwhile, an apathetic UK labour market report also collaborates with the selling pressure on the British Pound.

EUR/USD stays offered just above 1.1400

EUR/USD keeps the downtrend well in place for yet another day, challenging the 1.1400 contention zone on Tuesday. The continuation of the selling impulse in spot comes amid decent gains in the US Dollar, which continues to find support in the persistent effervescence surrounding the US-Iran crisis.

Middle East crisis intensifies, Gold up

Gold now seems to have embarked on a consolidative phase below the key $4,100 mark per troy ounce in the latter part of Tuesday’s session. Meanwhile, uncertainty surrounding the Middle East conflict and rising expectations for a hawkish Fed policy outlook are expected to limit the precious metal’s bullish momentum in the near term.

XRP rebounds on rising on-chain activity

Ripple (XRP) ticks up and trades around $1.13 at the time of writing on Tuesday. This rebound aligns with a broader recovery in the cryptocurrency market, attributed to reports that mediators between the United States (US) and Iran are seeking a 10-day cessation of strikes to find a way back to the signed Memorandum of Understanding (MoU).

The Iranian war has again risen

The Iranian war has again risen to the top of the economics factor list. There is no end in sight. Intelligence experts say the current level of offense/retaliation will not change minds in Tehran, while in Washington, Trump fears all-out war, which would mean boots on the ground.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.