The Greenback faced a sharp decline due to softer-than-expected US inflation readings in June, sparking expectations that the Fed would cut rates at its September meeting. The USD Index (DXY) dropped to multi-week lows around the 104.00 region after disappointing US CPI data and declining US yields. On July 12, focus will be on Producer Prices and the preliminary Michigan Consumer Sentiment gauge.
EUR/USD saw an increase and briefly touched the 1.0900 region before retracing. German Wholesale Prices and Current Account data will be released on July 12. GBP/USD rose to levels not seen in a year near 1.2950 as a result of the Greenback’s decline, with no major releases expected in the UK on July 12. USD/JPY dropped to monthly lows and approached the 107.00 zone following suspected FX intervention by Japanese officials. Final Industrial Production results will be announced on July 12.
AUD/USD continued its monthly recovery and approached the 0.6800 hurdle. The Australian calendar will be empty on July 12. The weaker Dollar and speculation around Fed rate cuts also led to an uptick in WTI prices beyond $83.00 per barrel. Gold prices rose above $1420 per ounce, while Silver improved to around $32.00 per ounce, reaching six-week highs.
Overall, the Greenback saw a decline due to disappointing inflation data and declining yields, with investors anticipating a rate cut by the Fed in September. Key economic data releases and traded pairs show movement in response to these factors. Additionally, commodity prices like Gold and Silver also saw increases thanks to the Dollar’s sell-off and increasing rate cut bets. Investors will be closely watching upcoming economic data releases and central bank decisions for further market direction.
