- US dollar index rises on lower odds of aggressive Fed easing.
- Gold drops amid risk-on market profile.
- Market awaits next UK PM announcement.
Here is what you need to know to start your day on Tuesday, July 23rd, European session:
– US dollar hit weekly tops vs. main rivals; Trump, Congress leaders reached a deal on debt limit, Trump ramped up pressure on the Fed for easing.
– Kiwi slipped as RBNZ considers working on unconventional policy/ QE strategy while RBA’s Kent said its highly unlikely to need QE.
– Cable pressured; Boris Johnson set to become next UK PM as Conservatives to announce new leader at 1045 GMT.
– Trade: US negotiators to visit China next week for first face-to-face trade talks since G20. China launched an anti-dumping probe on US propanol exports.
– Oil prices traded modestly flat amid UK-Iran geopolitical tensions, Gold fell on dollar strength, higher Treasury yields.
Key economic events ahead