Dollar Rallies on Upbeat Economic Data


The dollar index, which measures the greenback against a basket of major currencies extended gains rising to a high of 97.44 on upbeat economic data. The retail sales rose by 0.4% in June to beat estimates of 0.1% and signal that the US economy is still solid and outperforming rivals. The Federal Reserve Chairman reiterated that the Fed would act as appropriate to sustain the longest expansion in US history, while Fed's Evans stated that a 50 basis point rate-cut in July would help to reach the needed results faster. DXY also gained from the falling euro and pound. The economic data from the Eurozone continued to weaken with the ZEW numbers showing that the mood of German investors is still worsening. Meanwhile, the sterling tumbled as the leadership contestants, Boris Johnson and Jeremy Hunt, raised the stakes with the EU on no-deal Brexit. The EURUSD dropped to a one-week low of $1.12, the GBPUSD tumbled to a twenty-seven-month low of $1.2382, and the USDCHF rose to 0.9894.


The price of a gold ounce moved lower to find support near $1400 as the dollar ticked higher on upbeat data. The recent economic data coming out from the United States are showing that the US economy is still solid and weighing on the chances of aggressive easing by the Federal Reserve. Meanwhile, the price of a silver ounce climbed to $15.68, the highest since late February; and palladium declined to a three-week low of $1507.


Oil prices fell sharply on Trump's comment. He stated that there is progress between the United States and Iran, which signaled to investors that the geopolitical tensions could ease. On the other hand, Oil companies in the Gulf of Mexico are restoring their output activity after hurricane Barry. The West Texas Intermediate crude futures plunged to a ten-day low of $57.06, and Brent futures declined to $63.83. Market participants await the weekly oil report from the US Energy Information Administration.

Major Economic Events

GMT Country Event Expectation Previous



CPI (YoY) (Jun)





CPI (YoY) (Jun)





Building Permits (Jun)





Core CPI (MoM) (Jun)





Crude Oil Inventories





Beige Book




The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM.COM. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.

CFDs and Spot FX are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.87% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs and Spot FX work, and whether you can afford to take the high risk of losing your money. Read More
Read More
Mail Call Chat