Title: USD Steady Ahead of Upcoming Economic Data and Fed Remarks
Author Credit: Originally reported by Mitrade News, July 19, 2025
The US dollar held firm on Friday, trading within a tight range against its major counterparts, as investors awaited a series of economic reports and statements from Federal Reserve officials for further indications about the direction of US monetary policy. Amid the current uncertain global economic landscape, market participants are closely assessing every macroeconomic signal to gauge the trajectory of interest rate decisions and the broader financial outlook.
This article expands upon the key themes and developments originally reported by Mitrade News, providing an in-depth look into the latest Forex market movements, the factors shaping the US dollar’s strength, and the anticipated data releases influencing investor sentiment.
US Dollar Maintains Strength
The US dollar index (DXY), which measures the greenback’s performance against a basket of six major currencies, remained stable around the 105.80 level, a slight pullback from recent peaks but still within the elevated range seen in July. The dollar’s resilience continues to be underpinned by:
– Persistent inflation trends in the US economy
– Expectations that the Federal Reserve may keep interest rates elevated for an extended period
– Relative economic strength in the US compared to other major economies
The US dollar has shown considerable strength throughout 2025, outperforming many of its global peers thanks to a robust labor market and cautious monetary policy from the Federal Reserve, which has focused on maintaining inflation targets despite economic headwinds.
Upcoming Economic Reports in Focus
Markets are on edge ahead of a batch of US economic data scheduled for release in the coming days. The key reports include:
– Initial jobless claims data reflecting labor market conditions
– PMI (Purchasing Managers’ Index) figures for both manufacturing and services to measure economic activity
– Regional Fed manufacturing indexes such as the Philadelphia Fed Index and Empire State Index
– Existing home sales data
– Core Personal Consumption Expenditures (PCE) index, a preferred inflation metric by the Fed
Traders will be watching these figures closely for clues about the health of various sectors of the economy and the possible inflationary implications that could influence Fed policy.
Fed Speakers to Influence Sentiment
Alongside economic data, the market’s attention is also directed toward upcoming appearances by several Federal Reserve officials. Scheduled speeches and remarks will offer further insight into the central bank’s assessment of current economic conditions and its policy outlook.
Notable Fed officials speaking include:
– Fed Chair Jerome Powell
– New York Fed President John Williams
– Cleveland Fed President Loretta Mester
– San Francisco Fed President Mary Daly
These speakers are expected to reiterate the Fed’s caution regarding premature rate cuts, emphasizing the need to anchor inflation expectations and avoid a resurgence of price pressures.
Interest Rate Expectations
At the time of writing, Fed fund futures indicate that markets are pricing in only one interest rate cut for the remainder of 2025, most likely in December. Earlier in the year, some market participants had anticipated up to three cuts this year. However, persistent inflation data and strong employment trends have tempered those expectations.
According to CME Group’s FedWatch Tool:
– The probability of a rate cut in September remains below 30 percent
– A more substantial chance has been priced in for December, hovering near 60 percent
Despite this shift in expectations, the Fed has remained noncommittal, asserting that any change in policy will be data-dependent and driven by the dual mandate of maximum employment and price stability.
Global Currency Movements
While the US dollar was largely steady, several notable moves occurred among major global currencies.
EUR/USD:
– The euro traded marginally higher around 1.0860, with gains limited by soft economic indicators in the Eurozone
– Eurozone industrial production data and CPI revisions will be key upcoming influences
– The European Central Bank (ECB) has maintained a dovish tone, indicating that monetary policy will remain accommodative due to
Read more on EUR/USD trading.