US data and trade developments remain in centre stage

The US Dollar (USD) added to the continuing rebound and fuelled confidence at the start of the week as investors assessed recent trade deals between the United States, Japan, and the European Union. Investors, meanwhile, are expected to turn their attention to the impending FOMC meeting and the release of Nonfarm Payrolls.

Here's what to watch on Tuesday, July 29:

The US Dollar Index (DXY) rose for the third day in a row, reclaiming the area well beyond the 98.00 mark and advancing for the third consecutive day. The flash Goods Trade Balance results are due, seconded by Wholesale Inventories, the FHFA’s House Price Index, JOLTs Job Openings, the Conference Board’s Consumer Confidence, the Dallas Fed Services Index, and the API’s weekly report on US crude oil inventories.

EUR/USD sank to multi-day lows and receded to the area below 1.1600 following the US-EU trade deal and the continuation of the uptrend in the Greenback. The ECB’s Consumer Inflation Expectations are due.

GBP/USD deflated to levels last seen in mid-May near 1.3350 in an inconclusive fashion in the low-1.3400s on the back of the solid performance of the Greenback. The BoE’s Consumer Credit figures will be published alongside M4 Money Supply and Ne Lending to Individuals. In addition, Mortgage Lending and Mortgage Approvals are expected.

USD/JPY extended its march north on Monday, up for the third straight day and surpassing the 148.00 barrier amid further gains in the US Dollar. Next on tap on the Japanese docket will be the BoJ’s interest rate decision, Industrial Production, Retail Sales, and Foreign Bond Investment figures, all due on July 31 .

AUD/USD retreated to four-day lows and came closer to the 0.6500 neighbourhood following the better sentiment surrounding the US Dollar. Next on the Australian calendar will be the publication of the Inflation Rate on July 30.

Crude oil prices rebounded sharply, hitting the $67.00 mark per barrel of WTI, or multi-day highs, as traders evaluated the US-EU trade deal and Trump’s shorter deadline for Russia to end its conflict with Ukraine.

Gold maintained its offered stance well in place, deflating to three-week lows and putting the $3,300 mark per troy ounce to the test on the back of the firmer Greenback and extra optimism on the trade front. By the same token, Silver prices added to the ongoing retracement and broke below the $38.00 support per ounce.