In the world of foreign exchange trading, the markets remained mostly range-bound as investors focused on political developments in the US. There was also a sense of caution as traders awaited important data releases later in the week.
On July 23, the US Dollar Index (DXY) saw a slight uptick but struggled around the 200-day SMA near 104.40. Some of the key data releases expected on this day included Existing Home Sales, the Richmond Fed Manufacturing Index, and the API’s weekly report on crude oil inventories.
Meanwhile, the EUR/USD pair managed to gain traction and move back towards the 1.0900 level. The European Commission was set to release its Consumer Confidence gauge on the same day, and the ECB’s Lane was scheduled to speak as well.
In the UK, the GBP/USD pair experienced a reversal of two previous daily pullbacks, refocusing its attention on the 1.3000 region. The next important data release in the UK was set to be the preliminary PMIs for July on July 24.
The USD/JPY pair faced modest losses around the 157.00 zone due to a mix of factors including the performance of the greenback and higher US and Japanese yields. Upcoming data releases in Japan included the advanced Jibun Bank PMIs on July 24.
The AUD/USD pair continued its bearish trend, falling below 0.6700 as a result of lower commodity prices and negative news from China. Next on the agenda for Australia were the Judo Bank flash PMIs.
In the commodity markets, WTI prices dropped below $78.00 per barrel due to concerns about demand and easing geopolitical tensions. Gold prices also struggled, breaking below the key $2,400 level per ounce troy, while silver prices retreated for the fourth consecutive day, reaching new monthly lows near $28.70 per ounce.
