Daily forex news & analysis

Here are the latest daily forex news and analysis:

Market Overview

The US dollar strengthened against most major currencies on Wednesday, driven by a surge in Treasury yields and a rebound in US equities. The dollar index (DXY) rose 0.4% to 92.45, its highest level since June 2020.

Top Stories

  1. US Treasury Yields Soar: US Treasury yields jumped to their highest levels in over a year, with the 10-year yield rising to 1.55% and the 30-year yield reaching 2.15%. This sparked a rally in the dollar and a decline in gold prices.
  2. Fed Minutes Show Hawkish Tone: The minutes from the Federal Reserve's July meeting showed that policymakers were concerned about inflation and were considering a sooner-than-expected rate hike. This reinforced expectations of a rate hike in September.
  3. Eurozone GDP Growth Slows: The eurozone's GDP growth slowed to 0.3% in the second quarter, down from 0.4% in the first quarter. This was due to a decline in consumer spending and a slowdown in industrial production.
  4. UK Inflation Rate Rises: The UK's inflation rate rose to 2.1% in July, up from 1.9% in June. This was driven by higher prices for food, clothing, and housing.

Currency Market Analysis

  1. EUR/USD: The euro fell 0.5% to 1.1765, its lowest level since June 2020. The pair is likely to continue its decline as the dollar strengthens and the eurozone's economic growth slows.
  2. GBP/USD: The pound fell 0.4% to 1.3845, its lowest level since June 2020. The pair is likely to continue its decline as the UK's inflation rate rises and the country's economic growth slows.
  3. USD/JPY: The dollar rose 0.6% to 110.45, its highest level since June 2020. The pair is likely to continue its rally as the dollar strengthens and the yen weakens.
  4. AUD/USD: The Australian dollar fell 0.5% to 0.7255, its lowest level since June 2020. The pair is likely to continue its decline as the dollar strengthens and the Australian economy slows.

Technical Analysis

  1. EUR/USD: The pair is trading below its 50-day moving average and is likely to continue its decline towards 1.1700.
  2. GBP/USD: The pair is trading below its 50-day moving average and is likely to continue its decline towards 1.3800.
  3. USD/JPY: The pair is trading above its 50-day moving average and is likely to continue its rally towards 111.00.
  4. AUD/USD: The pair is trading below its 50-day moving average and is likely to continue its decline towards 0.7200.

Economic Calendar

  1. US: GDP growth rate (Q2), inflation rate (July), and jobless claims (weekly)
  2. Eurozone: Industrial production (June), trade balance (June), and consumer confidence (July)
  3. UK: Retail sales (July), inflation rate (July), and GDP growth rate (Q2)
  4. Canada: GDP growth rate (Q2), inflation rate (July), and jobless claims (weekly)

Forex Trading Tips

  1. Trade with the trend: The dollar is strengthening, so it's a good idea to trade with the trend and buy the dollar against other currencies.
  2. Use stop-loss orders: The market is volatile, so it's a good idea to use stop-loss orders to limit your losses.
  3. Monitor economic data: Economic data can have a significant impact on the currency market, so it's a good idea to monitor the data and adjust your trades accordingly.
  4. Stay disciplined: It's easy to get caught up in the excitement of trading, but it's important to stay disciplined and stick to your trading plan.

I hope this daily forex news and analysis helps you make informed trading decisions. Remember to always trade responsibly and with caution.