The unexpected rate hike by the BoJ surprised the FX world on Wednesday, while the Fed left its policy rate unchanged, although it signaled a potential rate cut in September. Next on tap comes the BoE, with odds split regarding a probable rate reduction.
Here is what you need to know on Thursday, August 1:
The USD Index (DXY) suffered the BoJ-driven strength in the Japanese yen and the somewhat dovish message from Chief Powell after the Fed left rates unchanged, as anticipated. On August 1, the ISM Manufacturing PMI takes centre stage along with usual Initial Jobless Claims, Construction Spending and the final S&P Global Manufacturing PMI.
EUR/USD reversed part of the weekly retracement, revisiting once again the 1.0850 region. The final HCOB Manufacturing PMI in Germany and the EMU are due on August 1 seconded by the ECB Economic Bulletin and the Unemployment Rate in the euro bloc.
GBP/USD printed modest gains around 1.2850 amidst steady prudence pre-BoE and the weaker Dollar. On August 1, the BoE will decide on its policy rate. Additionally on the UK calendar, Nationwide Housing Prices are due followed by the final S&P Global Manufacturing PMI.
The surprising rate hike by the BoJ prompted USD/JPY to retreat sharply and breach the key 150.00 support, printing fresh four-month lows. On August 1, the only release of note in Japan will be the weekly Foreign Bond Investment figures.
AUD/USD lost further ground and broke below the 0.6500 support, opening the door to further losses in the very near term. The final Judo Bank Manufacturing PMI is expected on August 1 along with the Balance of Trade figures.
Finally, some respite for WTI prices came on the back of rising geopolitical concerns and another drop in weekly US crude oil inventories, all lifting prices back to the vicinity of the $78.00 mark per barrel.
Prices of Gold added to Tuesday’s advance and retested the $2,440 region per ounce troy. Silver followed suit, posting gains for the second straight session and approaching the $29.00 mark per ounce.
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD bounces off lows, retests 1.1370
Following an early drop to the vicinity of 1.1310, EUR/USD now manages to regain pace and retargets the 1.1370-1.1380 band on the back of a tepid knee-jerk in the US Dollar, always amid growing optimism over a potential de-escalation in the US-China trade war.
GBP/USD trades slightly on the defensive in the low-1.3300s
GBP/USD remains under a mild selling pressure just above 1.3300 on Friday, despite firmer-than-expected UK Retail Sales. The pair is weighed down by a renewed buying interest in the Greenback, bolstered by fresh headlines suggesting a softening in the rhetoric surrounding the US-China trade conflict.
Gold remains offered below $3,300
Gold reversed Thursday’s rebound and slipped toward the $3,260 area per troy ounce at the end of the week in response to further improvement in the market sentiment, which was in turn underpinned by hopes of positive developments around the US-China trade crisis.
Ethereum: Accumulation addresses grab 1.11 million ETH as bullish momentum rises
Ethereum saw a 1% decline on Friday as sellers dominated exchange activity in the past 24 hours. Despite the recent selling, increased inflows into accumulation addresses and declining net taker volume show a gradual return of bullish momentum.
Week ahead: US GDP, inflation and jobs in focus amid tariff mess – BoJ meets
Barrage of US data to shed light on US economy as tariff war heats up. GDP, PCE inflation and nonfarm payrolls reports to headline the week. Bank of Japan to hold rates but may downgrade growth outlook. Eurozone and Australian CPI also on the agenda, Canadians go to the polls.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.