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The US Dollar regained momentum on Thursday, reversing a prior dip as investors digested upbeat US data while monitoring trade developments and central bank tensions. With a packed Friday agenda, July 18, the market stands at a crossroads—can the Dollar’s strength persist, or will new data shift the tide?
US Dollar Leads with Key Data Ahead
The US Dollar Index (DXY) surged, nearing the critical 99.00 level after a two-week rebound, fueled by solid economic indicators. Friday’s spotlight falls on the preliminary U-Mich Consumer Sentiment, alongside Building Permits and Housing Starts. Central bank official Christopher Waller is also slated to speak, adding to the day’s focus on monetary policy.
Euro and Pound Face Pressure
EUR/USD slipped, testing multi-week lows around 1.1550 amid ongoing downward pressure. Germany’s Producer Prices, along with Euroland’s Current Account and Construction Output, are due Friday. Meanwhile, GBP/USD hovers near 1.3400, entering a consolidation phase, with UK public sector finances set for release on July 22.
Yen and Aussie Currencies in Play
USD/JPY held firm near three-month highs above 149.00, with Japan’s Inflation Rate taking center stage Friday amid election chatter. AUD/USD corrected sharply to three-week lows around 0.6450, driven by the Dollar’s rise, with Reserve Bank of Australia Minutes expected July 22.
Commodities Reflect Mixed Signals
WTI oil prices edged up to around $66.00 per barrel, supported by a stronger Dollar, eased trade worries, and persistent geopolitical tensions. Gold steadied just above $3,300 per troy ounce, oscillating with the Dollar’s strength, while silver fluctuated near $38.00 per ounce.
What’s Next for Markets?
Friday’s data and speeches could sway the Dollar’s trajectory. Positive sentiment might push it past 99.00, but a weak inflation read or election surprise could trigger a reversal. Markets hang in balance—will stability hold, or will volatility surge?
