EUR/USD, GBP/USD, DXY Price Forecast: DXY Steady Near $104.30; Eyes on US GDP

On July 24th, The EUR/USD was influenced by weaker-than-expected French and German Flash Manufacturing PMIs, coming in at 44.1 and 42.6, respectively, signaling continued contraction in the manufacturing sector.

However, the services sector showed slight improvements, with French Flash Services PMI at 50.7 and German Flash Services PMI at 52.0. These mixed signals caused the EUR/USD to hover around the 1.1100 mark.

Across the Channel, the GBP/USD showed resilience with the UK’s Flash Manufacturing PMI at 51.8, exceeding expectations. The Flash Services PMI also held steady at 52.4. These figures helped the Pound remain steady around 1.2850.

In the US, the Dollar Index (DXY) reacted to a slight dip in Flash Manufacturing PMI to 49.5, but robust services data, with Flash Services PMI rising to 56.0, provided support. New Home Sales also exceeded forecasts, coming in at 617K, contributing to the DXY holding around 101.50.

Events Ahead

Looking ahead to July 25th, the German ifo Business Climate Index is anticipated to improve slightly to 87.0, which could lend support to the Euro if the data beats expectations.

In the US, the focus will be on the Advance GDP figures, expected to show a growth rate of 2.0% for Q2. Any deviation from this figure could cause significant volatility in the USD pairs.

Additionally, the market will watch unemployment claims, expected at 237K, and durable goods orders for further clues on the economic outlook. ECB President Lagarde’s speech and G20 meetings could also provide insights into future monetary policy, influencing EUR/USD movements.

With these events on the horizon, traders should brace for potential market swings.