The Key Headlines On Currency Trading

 Currencies: 

Monthly change: EURUSD +0.3%, GBPUSD +1.16%, USDJPY -1.23%, USDCAD +0.85%, AUDUSD -1.45%

DXY ended July at 92.09. After the Fed's Chairman stated last week that rate increases were 'a ways away', the index declined in the previous week. Compared to the 3% rise in June, the index lost 0,5% in July. This month surprised the investors with the Fed's dovish tone of voice. As far as the major central banks showed no intentions of paving a way towards rates hikes during the month, the anticipation was that the era of zero rates would end at the FOMC press conference. But the regulator paused the steps as well. As for the monthly EURUSD review, the pair retreated from the monthly-high 1.1910 area to 1.1870. Such a strong rise was caused by the ease of the greenback and the strong eurozone GDP data. The ECB also held some disappointing meetings in July. The major central banks decided against adding heat to the hot summer of 2021.

The GBPUSD pair outperformed the major currencies within July. The pair peaked at 1.39800 on the broad U.S.dollar's weakness and the declining trend in new COVID cases in the U.K.. But by the end of the month, the price slipped and closed July near 1.38970. Inflation remained the critical component in each country, but the British economic situation is more substantial. Probably, the BoE will become the first major central bank to start the countdown to the U-turn of the monetary policy next week.

USDCAD was the runner-up among the best main performing currencies in July. Mid-month, it exceeded 1.2800 due to the oil price decline. But towards the end of the month, the selling pressure remained strong due to the oil recovery and the U.S. dollar easing. The final July price for the pair was 1.24664.

The AUDUSD pair was still bearish, showing the worst monthly result among majors. The RBA continued its dovish sentiment at its monthly meeting. The Australian dollar was affected by the worsening COVID situation and declining stocks. During the month, the price touched 0.72900 but closed July at 0.73400. USDJPY showed the second-worst result of the month. The pair ended with a loss to 109.60. Although Japan's factory output jumped and job availability rose to the highest level in a year, the rise in COVID infections faded the growth in the current quarter.

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