Forex Today: US dollar back in the red; China trade, Eurozone data eyed


A sense of calm prevailed in the market, with most majors extending their recovery mode amid fresh US dollar weakness across the board. The Asian traders continue to weigh in the dovish Fed Chair Powell’s testimony and shrugged off upbeat US inflation data. However, the Treasury yields attempted a tepid bounce across the curve, having kept Gold prices sidelined below the 1410 level.

Among the Asia-pac currencies, the USD/JPY pair enjoyed good two-way businesses so far this Friday. The spot extended the overnight recovery near 108.60 region before receding sharply to test the key support of 108.31. The Aussie extended the rebound and tested the 0.70 handle despite looming US-China trade uncertainty while the NZD/USD pair rallied hard in a bid to regain the 0.67 handle. The recent strength in oil prices also helped the commodity currency, the Kiwi, as the oil bulls were underpinned by the risks of Gulf of Mexico storm turning into a hurricane and escalating Middle East tensions.

Meanwhile, both the EUR/USD and Cable traded firmer amid a broadly weaker US dollar and ahead of the Eurozone Industrial Production data release.

Main Topics in Asia

Fed’s Kashkari: Sought half-point cut in June to re-anchor inflation

Fed Lael Brainard: Perspectives on the Economy from Scranton

US Pres. Trump’s pick for top military adviser: China poses top threat for decades ahead – SCMP

Sources: US will not blacklist Iran's foreign minister, for now – Reuters

China's Liu He: Pressures on economy 'normal' - Xinhua

St. Louis Fed Financial Stress Index drops for fourth consecutive week

US NHC: Tropical storm Barry could become hurricane on late Friday

Huawei Chairman again demands US remove it from the US entities list

Asian stocks traded mixed ahead of China trade data

Gold pulls back amid trade jitters, lack of fresh catalysts

India: US to seek rollback of Indian tariffs on some agricultural products – Reuters

WTI: Bulls hold reins near 7-week top amid commodity rally

Key Focus Ahead

Markets gear up for a busy EUR docket to wrap an eventful week, with the German Wholesale Price Index (WPI) data dropping in at 0600 GMT, following the Chinese trade balance at 0700 GMT. At 0900 GMT, the Eurozone Industrial Production data will be reported that is likely to have a significant impact on the shared currency, as the European Central Bank (ECB) looks to ease monetary policy sooner (than later). The UK docket remains data empty and therefore, the UK political dram will continue to influence the GBP price-action.

The NA session offers the only relevant data in the US Producer Price Index (PPI) data, due at 1230 GMT. The speech by the Fed official Evans will also grab some attention ahead of the US Baker Hughes Oil Rig Count data due on the cards at 1700 GMT.

EUR/USD probing key trendline hurdle, focus on Eurozone industrial production

EUR/USD is chipping away at key trendline hurdle. Breakout may remain elusive if Eurozone data disappoints expectations. China trade data is expected to show a surge in exports in CNY terms. 

GBP/USD: Well bid near 1.2450 despite UK’s political stalemate

The Cable traded with moderate gains, showing little reaction to the UK political and Brexit uncertainty, as markets focused on the USD weakness amid dovish signals from the Fed policymakers.

The Phillips Curve and the Fed’s wage insurance policy

Rates have once again turned.  The 10-year has gained 18 point to a 2.13% close on July 11th. The 2-year has added 13 points to 1.86% also on the 11th. It traded as high as 1.92% on the 9th.

Brent technical analysis: Eyes break above $67 with falling channel breakout

Brent oil could soon challenge immediate resistance at $67.14, as the 15-minute chart is reporting an expanding descending channel breakout. 

GMT
Event
Vol.
Actual
Consensus
Previous
Friday, Jul 12
06:00
 
1.3%
1.6%
06:00
 
0.2%
0.3%
07:00
 
8.6%
8.5%
07:00
 
-2.0%
1.1%
07:00
 
8.3%
-2.5%
07:00
 
$44.65B
$41.65B
07:00
 
21.4%
7.7%
07:00
 
284.674B
279.120B
07:00
 
-4.5%
-8.5%
07:00
 
1,700B
1,180B
08:00
 
 
09:00
 
-1.6%
-0.4%
09:00
 
0.2%
-0.5%
12:30
 
0.0%
0.1%
12:30
 
1.6%
1.8%
12:30
 
2.2%
2.3%
12:30
 
0.2%
0.2%
14:00
 
 
17:00
 
 
788
19:30
 
 
$258.9K
19:30
 
 
392.8K
19:30
 
 
£-64K
19:30
 
 
¥-1K
19:30
 
 
€-31K
19:30
 
 
$-58K

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD registers an inside day ahead of German Zew survey

EUR/USD created an inside day or inside bar candlestick pattern on Monday, indicating investor indecision and impending volatility. An inside day occurs when the price action falls within the preceding day's high and low. On Monday, 

EUR/USD News

GBP/USD: Inside day makes Tuesday's close pivotal

GBP/USD created an inside bar candlestick pattern on Monday, making Tuesday's GMT close pivotal. An inside bar occurs when the daily high and low falls within the preceding day's trading range. The pair hit a high at 1.2650.

GBP/USD News

USD/JPY unchanged on 108 handle in Tokyo opening hour, eyes on key events

USD/JPY is steady in Tokyo's opening hour, down -0.02% despite the concerns over the 'Phase1' deal made between China and the US on Friday. Looking ahead, eyes are on US Industrial Production and Fed speakers.

USD/JPY News

Gold: Bears look for a break below the trendline support

The price had been sent lower below the 21 and 50-day MA converging and the 7th Oct lows. Trendline support guards a test of a 50% mean reversion of the late June swing lows to recent highs around 1480 will be encouraged. 

Gold News

UK jobs report preview: GBP/USD set to react to figures that go with the Brexit mood

Finding a job in the UK is more accessible than in the past and pay is rising – but that does not move the pound these days. The employment report is scheduled two days ahead of the critical EU Summit and 16 ahead of Brexit Day. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures