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FXStreet
Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.
GBP/USD continues its winning streak for the ninth consecutive day, trading around 1.3390 during the Asian hours on Tuesday. The currency pair rises as the US Dollar faces headwinds as market participants scale back expectations for Federal Reserve rate hikes this month and in September.
The EUR/USD pair extends its sideways consolidative price move during the Asian session on Tuesday, though it manages to hold comfortably above the 1.1400 mark. Moreover, spot prices remain well within striking distance of a nearly two-week high, touched last Thursday.
Gold extends losses toward $4,100 early Tuesday, down for the second straight day. Tensions over the Strait of Hormuz remain elevated, lending some support to the safe-haven US Dollar and weighing on the bullion. However, receding bets on further Fed rate hikes could keep USD bulls on the back foot and help limit downside for the non-yielding yellow metal.
Bitcoin began July on stronger footing after rebounding above $64,000 following improving derivatives positioning and signs of market stabilization. QCP analysts noted that Bitcoin's early-July rebound aligns with long-term seasonal trends. Historically, July has been one of Bitcoin's strongest months, averaging gains of about 7.5%.
As the king among safe havens, the Swiss Franc is supposed to benefit from geopolitical shocks such as the Iran war. This time, it didn’t. The Swissie is nearly 6% below January’s peak against the USD after a sharp decline that came along with the war in Iran and the closure of the Strait of Hormuz.
Financial markets came to Sintra looking for clues about the Federal Reserve's (Fed) next move. They largely left with confirmation that Fed Chair Kevin Warsh intends to make those clues much harder to find.
