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The dollar index (DXY00) rose by +0.43% to a 5-week high, boosted by Monday’s EU-US trade deal, which is perceived as favorable to the US. Additionally, the dollar gained support from the unexpected shrinkage of the US June advance goods trade deficit to -$86.0 billion, against expectations of -$98.0 billion, and a rise in consumer confidence in July to 97.2, surpassing forecasts of 96.0.
Meanwhile, EUR/USD fell by -0.50% to a 5-week low, pressured by a newly announced deal that imposes 15% tariffs on most EU goods, raising concerns for the Eurozone economy. The ECB’s inflation expectations eased in June to +2.6% from +2.8% in May, hinting at a dovish stance. The US also reported a decrease in JOLTS job openings by -275,000 to 7.437 million, lower than the expected 7.500 million.
In precious metals, August gold rose +0.06%, while September silver declined -0.12%. Despite growth in gold ETF holdings to a two-year high, the stronger dollar index and the S&P 500 hitting a record high diminished the appeal of safe-haven investments. Recent easing of trade tensions further pressured precious metal demand.
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