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26.07.2022 Market Report


EUR/USD is eyeing more upside after overstepping the barricade of 1.0250. Escalating recession worries have weighed pressure on the DXY. The Fed is likely to hike interest rates by 75 bps as a  1% rate hike is out of the picture.


GBP/USD grinds higher at the monthly top, printing the four-day uptrend as it rises to 1.2085 during Tuesday’s Asian session. it’s worth noting that the cable pair’s recent strength takes clues from the US dollar’s weakness while ignoring concerns over UK inflation and politics.


The USD/JPY pair attracted some buying near the 136.00 round-figure mark on Monday and snapped a two-day losing streak, though lacked follow-through. The US Treasury bond yields edged higher and reversed a part of the recent sharp fall seen over the past few sessions amid some repositioning trade ahead of the FOMC meeting this week. This resulted in the widening of the US-Japan rate differential, which, in turn, drove flows away from the Japanese yen and provided a modest lift to the major. 


AUD/USD steps back from monthly high while taking offers to pare intraday gains around 0.6960 during early Tuesday morning in Europe. The Aussie pair’s latest pullback could be considered the market’s preparations for the key data/events. However, a softer US dollar and hopes of firmer Australian inflation data keep buyers hopeful.


The NZD/USD pair has surrendered its entire gains after re-testing Monday’s high at around 0.6280 in the Asian session. The asset has tumbled to near 0.6260 and is likely to remain subdued as the investing community is turning cautious on expectations of one more interest rate hike by the Federal Reserve (Fed).


USD/CAD licks its wounds around 1.2840, heading into Tuesday’s European session. In doing so, the Loonie pair takes clues from the latest rebound in the US dollar and a pullback in prices of Canada’s key export item, WTI crude oil.


USD/CHF retreats to 0.9635 as it refreshes its intraday low during Tuesday’s Asian session, reversing the previous day’s rebound from a three-week low.


Considering flash data from CME Group for crude oil futures markets, traders added around 1.4K contracts to their open interest positions on Monday, reaching the fourth consecutive daily build. Volume, instead, extended the downtrend and went down by around 79.4K contracts.


Gold price is clinging to minor recovery gains, although remains well within the recent trading range.

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