Market Drivers; US Session, July 16

The US Dollar and the majority of riskier assets were essentially steady from Monday’s closing levels, despite the indecisive price action in the Forex market on Tuesday due to persistent anticipation of a rate cuts by the Fed in September.

As Tuesday’s trading day came to a finish, the positive impact of stronger-than-expected US retail sales began to fade, and the USD Index (DXY) remained around the low-104.00 range. July 17 is the deadline for the regular weekly mortgage applications. This is followed by the Fed Beige Book, Building Permits, Housing Starts, and Industrial Production. Fed’s Barkin and Waller are also scheduled to speak.

Key Developments In Forex Space:

EUR/USD managed to leave behind the earlier knee-jerk and revisited the 1.0900 zone. On July 17, the final Inflation Rate in the broader Euroland will be the salient event on the old continent.

GBP/USD traded in a vacillating fashion, although it succeeded in keeping business near recent peaks just below 1.3000. The release of UK Inflation Rate takes centre stage on July 17.

USD/JPY added to Monday’s gains on the back of the resumption of the selling pressure around the Japanese currency. The Reuters Tankan Index is expected on July 17.

AUD/USD dropped markedly to multi-day lows near 0.6710, adding to Monday’s pullback amidst lower commodity prices and small gains in the Greenback. The Leading Index tracked by Westpac and the speech by the RBA’s Simon are due in Oz on July 17.

Commodities:

For the third straight session, traders were burdened by persistent concerns about global demand, which caused WTI prices to retreat and get closer to $80.00 per barrel.

As traders continued to evaluate the Fed’s rate reduction, gold prices surged to a record high above $2,460 per troy ounce. Silver, its relative, made a similar recovery, surpassing $31.00 per ounce following two consecutive days of declines.

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