Forex Today: Trade and ECB-speak should rule the sentiment

The Greenback added to Wednesday’s uptick and climbed to fresh multi-day highs boosted by firmer prints from the US Nonfarm Payrolls in June, reinforcing the view of a extremely resilient US labour market and motivating market participants to start repricing potential rate cuts by the Fed in the next few months.

Here's what to watch on Friday, July 4:

The US Dollar Index (DXY) advanced to weekly peaks near 97.40 amid an equally strong rebound in US yields across different time frames. US markets will be closed on July 4 due to the Independence Day holiday.

EUR/USD extended further its rejection from YTD highs north of the 1.1800 barrier, coming close to the 1.1700 support. Germany’s Factory Orders are due seconded by the HCOB Construction PMI in Germany and the Euroland, as well as Producer Prices in the bloc. In addition, the ECB’s Lagarde and Elderson are expected to speak.

GBP/USD managed to reverse Wednesday’s strong decline, regaining the 1.3600 hurdle and beyond despite persistent unease around the UK fiscal situation. The UK S&P Global Construction PMI will be published along with New Car Sales readings.

USD/JPY rose markedly to multi-day peaks, managing to briefly trespass the key 145.00 level. The Household Spending prints will be in the spotlight on the Japanese calendar.

AUD/USD faded three daily upticks in a row, keeping its consolidative mood in the upper end of the range near the 0.6600 region. The next salient event in Australia will be the RBA’s interes rate decision on July 8.

Prices of the American WTI charted modest losses around the $67.00 mark per barrel, relinquishing part of its gains recorded in the last couple of days.

Prices of Gold met fresh selling pressure and retreated to the vicinity of the $3,300 mark per troy ounce following another positive day in the Greenback and further advance in US yields across the spectrum. Silver prices added to Wednesday’s uptick, rising to two-week highs north of the $37.00 mark per ounce.