Dollar Slips and Oil Falls as Markets Reprice Fed and Iran Risks
United States. The US dollar is strengthening against the Japanese yen today while posting moderate losses against the euro and the British pound.
United States. The US dollar is strengthening against the Japanese yen today while posting moderate losses against the euro and the British pound.
United States. The US dollar is strengthening against the pound while showing mixed performance against the euro and the yen.
The GBP/USD pair has been declining for two consecutive weeks after reversing from 1.3549 (Murrey level [6/8]). The pair reached 1.3305 (Murrey level [2/8]) and consolidated below the middle line of the Bollinger Bands. Today, the price corrected toward 1.3366 (Murrey level [3/8]) amid signs of easing geopolitical tensions in the Persian Gulf. Over the weekend, the United States temporarily paused its strikes on Iran, while Tehran indicated that it would also halt attacks as long as the US pause remained in place. The development raised hopes that diplomatic negotiations could resume.
The EUR/USD pair has been trading within the sideways range of 1.1474–1.1352 (Murrey levels [4/8]–[2/8]) for a second consecutive month. Today, the pair tested 1.1413 (Murrey level [3/8]) amid easing geopolitical tensions in the Middle East and stronger-than-expected July business sentiment data from Germany’s Ifo Institute. Over the weekend, the United States and Iran announced a temporary pause in attacks, raising hopes that the conflict could shift from military confrontation toward diplomacy. Such a development would reduce the risk of a deeper energy crisis and accelerating global inflation, potentially putting medium-term pressure on the US dollar as demand for safe-haven assets weakens.
United States. The US dollar is weakening against the euro while showing mixed performance against the Japanese yen and the British pound.
The US dollar is showing mixed dynamics against the Japanese yen, with USD/JPY consolidating near 163.80 after approaching 163.96, its highest level in around 40 years. The pair remains supported by the wide interest rate differential between the United States and Japan, renewed demand for dollar liquidity and rising costs for Japan’s imported energy supplies amid geopolitical tensions in the Middle East.
During the Asian session, GBP/USD remains in a corrective phase, trading near 1.3318 as the US dollar benefits from renewed safe-haven demand. Sterling is struggling to restore its previous upward momentum as investors reassess the monetary policy outlook for the world’s leading central banks, while persistent geopolitical risks continue to affect energy prices and global inflation expectations.
The US dollar is strengthening against its major counterparts, including the euro, pound and Japanese yen.
EUR/USD is trading near 1.1432 in a corrective move as market participants assess the impact of two key factors: escalating geopolitical tensions in the Middle East and a weakening economic outlook for the euro area. According to the latest data from Eurostat, annual consumer price inflation fell from 3.2% to 2.8% in June, marking its first decline since an inflationary trend emerged at the beginning of the year. Inflation excluding energy, food, alcohol and tobacco eased from 2.6% to 2.4%. The most significant slowdown was recorded in the energy sector, where inflation fell from 10.8% to 8.5%, while services inflation declined from 3.5% to 3.2%. Annual inflation eased in 22 of the EU’s 27 member states, reaching 2.4% in Germany, 2.0% in France, 3.0% in Italy and 3.6% in Spain.
The euro is correcting around 1.1411 as investors focus on the latest inflation data, which are shaping expectations for the European Central Bank’s (ECB) monetary policy trajectory ahead of tomorrow’s meeting at 14:15 (GMT+2).
The Euro to Dollar exchange rate is trading around 1.1426, remaining almost unchanged in July after falling 2.0% in June. The pair reached its 2026 high above 1.2075 in January before retreating, while the June low near 1.1325 marked the weakest level since July 2025.
Gold remains under pressure as elevated US bond yields weigh on demand, but Goldman Sachs expects sustained central bank purchases to limit the downside and prevent a prolonged decline despite short-term market headwinds.
Bank of America economists expect oil prices in US Dollars to climb back above $100 per barrel if disruptions around the Strait of Hormuz persist for several more weeks.
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