Market Drivers; US Session, July 9

The USD Index (DXY) surged past the 105.00 and flirted with the interim 55-day SMA amidst a decent uptick in US yields. The second semi-annual testimony by Chair J. Powell to the Congress is due on July 10, along with weekly Mortgage Applications, Wholesale Inventories and speeches by the Fed’s Bowman and Goolsbee.


EUR/USD remained on the defensive and put the 1.0800 region to the test once again amidst further recovery in the Greenback. The euro docket is empty on July 10. The GBP/USD pair added to Monday’s losses and broke below the key 1.2800 level in response to the modest comeback in the US Dollar. On July 10, the BoE’s Pill is due to speak.

Extra recovery in the US Dollar and the move higher in yields underpinned the daily uptick in USD/JPY to three-day highs near 161.50. Producer Prices will be in the spotlight on July 10 in Japan.

AUD/USD managed to overcome the Dollar’s bounce and advanced marginally, keeping the trade well above 0.6700 the figure. Australian final Building Permits and the speech by the RBA’s Simons are expected on July 10, while Chinese inflation data will also be of interest around AUD.

WTI prices fell for the third straight session, returning to multiday lows close to the $81.00 a barrel as geopolitical fears abated and hurricane-related supply concerns diminished.

Gold prices held onto daily gains of about $2,360 per troy ounce despite rising yields and a stronger dollar. In a similar vein, Silver recovered somewhat from Monday’s sharp decline and closed just over $31.00 per ounce.

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