US Dollar, Euro, Japanese Yen, Australian Dollar, RBA, NFPs

The US Dollar mostly outperformed its major counterparts this past week, especially against the Euro, Australian Dollar, and New Zealand Dollar. This is despite a Federal Reserve that raised rates and did little to bolster further tightening bets down the road, leaving a data-dependent path.

The European Central Bank, which also tightened, left the door open to further tightening too. But, traders punished the Euro considering President Christine Lagarde was not necessarily committed in her language in terms of a September hike. Meanwhile, the Japanese Yen was left disappointed as the Bank of Japan seemed to offer a dovish outlook considering their inflation outlook.

This meant a relatively solid week for sentiment as the Dow Jones, S&P 500 and Nasdaq 100 pushed higher. Volatile earnings from the tech sector did little to stand in their way as this year’s bull market continued. The VIX market ‘fear gauge’ is still sitting around the lows of this year, as well as the cheapest point since right before the global pandemic breakout in 2020.

What is in store for financial markets in the week ahead? We begin with Chinese manufacturing PMI early Monday morning. Further disappointing data could speak to global growth woes. An RBA rate decision is also in the cards, as well as New Zealand employment data. The week concludes with US non-farm payrolls on Friday. For further reading, check out the outlooks below:

How Markets Performed – Week of 7/24

Forecasts:

British Pound (GBP) Forecast: GBP/USD and EUR/GBP as the BoE Looms Large

After some market moving decisions from three of the major central banks this week, the Bank of England will be in the spotlight next Thursday.

Australian Dollar Forecast: All Stations Go for AUD/USD and AUD/JPY

The Australian Dollar rollercoaster ride continued last week and might be geared up for another bout of volatility going into the RBA meeting on Tuesday. Will AUD push lower?

Euro Forecast: Volatile EUR/USD Calms as EUR/JPY Fully Recovers Losses

The euro had a volatile end to the week mainly driven by other currencies. Potentially sticky EU core CPI next week can support the euro but growth concerns weigh.

Japanese Yen Forecast: USD/JPY, GBP/JPY Bounce off Support After BoJ Disappointment

The Japanese Yen gave up most of its upside progress last week after disappointment from the Bank of Japan. How is the technical landscape shaping up for USD/JPY and GBP/JPY in the week ahead?

US Dollar Forecast: ‘Soft Landing’ Narrative Gains Traction Post FOMC

US Dollar strength waned slightly on Friday after PCE data came in lower than expected. Will the ‘soft landing’ narrative weigh on the Dollar or Inspire a new leg to the upside?

S&P 500, Nasdaq 100 Forecast: Apple and Amazon Earnings Eyed Before US Jobs Data

Corporate earnings from tech mega-caps Apple and Amazon, along with the June U.S. jobs report, could set the trading tone for the S&P 500 and Nasdaq 100 in the week ahead.

— Article Body Written by Daniel Dubrovsky, Senior Strategist for DailyFX.com

— Individual Articles Composed by DailyFX Team Members