Market Drivers; US Session, July 1: Markets Await Speeches by Powell, Lagarde

Mohamed Abdelhamid 2 July, 2024 4:33 am Commodities, Forex Market, Market Update

Before Fed Chair Powell and ECB President Christine Lagarde speak on Tuesday, the US dollar recovered from a negative start to the week amid growing prudence and a generalized desire for risk.

Currencies

After losing two straight sessions, the USD Index (DXY) turned its attention back to the crucial 106.00 level. J. Powell, the chair of the Fed, will take part in a programme at the ECB Forum in Portugal. The RCM/TIPP Economic Optimism Index is only due on July 2 according to the docket.

The euro held up its positive trend and reached three-week highs around 1.0780 as traders evaluated the outcome of Sunday’s snap elections in France. Preliminary Eurozone Inflation Rate data is anticipated on July 2, one day before Christine Lagarde, the head of the European Central Bank, speaks at the bank’s symposium in Sintra, Portugal.

As purchasing demand in the US Dollar resumed near the end of the NA session, GBP/USD lost away an earlier rise to the region just past the 1.2700 barrier. On July 2, there won’t be any Channel data releases.

The USD/JPY increased in value and hit fresh highs close to the 162.00 zone. On July 2, the Japanese docket will be cleared.

The pair was trading inside the consolidative theme that has remained constant thus far, centred around 0.6650, as the negative tendency in the AUD/USD resumed. Only on July 2 are the RBA Minutes anticipated in Australia.

Currencies

WTI prices hit fresh highs above $83.00 per barrel in the second part of the year due to concerns about supply and growing optimism about the start of the US driving season.

While silver prices increased for the third straight session, they are still below the crucial $30.00 per ounce level. Gold prices, on the other hand, stayed trapped inside their previous range, close to the $2,330 zone per ounce troy.

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