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EUR dips after ECB turns more dovish

HEADLINES

 

 

  • Euro slips; U.S. dollar inches higher in volatile trading
  • NZD/USD inches closer to 0.7000 on cautious optimism amid subdued markets
  • Oil Closes Out Wild Week With Rally Intact as Bulls Fight Back
  • Gold holds steady as lower bond yields negate pressure from firm dollar
  • Asian shares dragged by vaccination lag, Wall St fares better
  • ECB: July meeting was a non-event for FX markets – Danske Bank

 

 

FOREX

 

 

Euro slips; U.S. dollar inches higher in volatile trading

 

The dollar edged higher overall in choppy trading on Thursday, moving with the ebbs and flows of risk sentiment, while the euro fell as investors digested the European Central Bank statement and comments by its president.

 

NZD/USD inches closer to 0.7000 on cautious optimism amid subdued markets

 

NZD/USD stays on the front foot around 0.6985, up 0.27% intraday, amid early Friday. In doing so, the kiwi pair reverses the previous day’s downside move near the day’s high as market sentiment improves during a sluggish Asian session.

Also, New Zealand’s comparatively better covid conditions than the rest of the global and increasing odds of RBNZ rate hike during late 2021, to be the first developed back in that action, favor NZD/USD bulls.

 

 

COMMODITIES

 

 

Oil Closes Out Wild Week With Rally Intact as Bulls Fight Back

 

Oil held the bulk of a three-day advance to trade above $71 a barrel amid optimism that rising demand will tighten the global market.

West Texas Intermediate edged 0.4% lower, after rallying more than 8% in the preceding three sessions. That run of gains means that prices are little changed on the week, having recouped most of Monday’s slump, when crude plunged on concern the spread of the delta coronavirus variant would crimp consumption just as the OPEC+ alliance moved to add more barrels.

 

Gold holds steady as lower bond yields negate pressure from firm dollar

 

Gold prices steadied on Friday after hitting a more than one-week low in the previous session, as a retreat in U.S. bond yields and weak economic data countered a stronger dollar. Bullion is down 0.2% so far this week, after posting gains for the previous four weeks.

 

 

STOCKS

 

 

Asian shares dragged by vaccination lag, Wall St fares better

 

Asian share markets were in a mixed mood on Friday after a volatile week in which sentiment over global growth waxed and waned with every new headline on the Delta variant.

MSCI's broadest index of Asia-Pacific shares outside Japan which slipped 0.4%, leaving it down 1.1% on the week so far. Chinese blue chips lost 1%, though well within the tight trading range of the past three weeks.

Wall Street was in a better mood after a run of strong earnings, with Nasdaq futures up 0.3% and S&P 500 futures 0.2%.

 

 

ANALYSIS

 

 

ECB: July meeting was a non-event for FX markets – Danske Bank

 

“ECB’s first meeting since the new strategy took effect was mostly about aligning the language from the June decision to the review outcome. The bond buying (APP and PEPP) guidance were unchanged.”

“The ECB meeting was a non-event for FX markets. The EUR initially found its clue from relative EUR fixed income performance but during the press conference the single currency stabilised at close to unchanged levels for the day. Looking ahead, we strategically favour more EUR/USD downside but emphasise that this is much more a play on USD real rates, global inflation exposure and global cross asset moves than it is a play on ECB monetary policy.”

 

 

CHART

 

 

Gold – 4 hour Candlesticks

Source: GKFX Prime Metatrader 4

XAU/USD continued to find support at former resistance around 1795, just shy of the big 1800 round number. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

SOURCE

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/ecb-july-meeting-was-a-non-event-for-fx-markets-danske-bank-202107221437
https://www.fxstreet.com/news/nzd-usd-inches-closer-to-07000-on-cautious-optimism-amid-subdued-markets-202107230150
https://www.reuters.com/business/euro-just-off-3-12-mth-low-vs-dollar-pre-ecb-2021-07-22/
https://finance.yahoo.com/news/asian-shares-dragged-vaccination-lag-032221175.html
https://finance.yahoo.com/news/oil-holds-three-day-advance-001157276.html
https://www.cnbc.com/2021/07/23/gold-markets-us-bond-yields-economic-data-dollar.html

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