The euro fell below parity on Thursday but recovered on Tuesday this week on the latest report that ECB policymakers are set to discuss a rate hike worth 25 bps or 50 bps at Thursday’s meeting.
The British pound bottomed last week but the data published by the UK's Office for National Statistics on Tuesday revealed that May’s unemployment rate in the UK remained unchanged at the previous month’s low of 3.8%, which supported the pound.
The Japanese yen continued to weaken after the US CPI figures in June rose much more than expected hitting 9.1%, but it consolidated on Monday as the repricing of the 75 basis point interest rate hike (from 100 bps) took place again.
Gold prices remained depressed failing to capitalize on broad dollar weakness. It consolidated around $1710 per ounce. The strengthening of the US dollar alongside aggressive monetary policies of major central banks still pressure zero-yielding gold, but in recent days the precious metal has recouped some losses.
All major US stock indexes were little changed. The Q2 earnings season started last week with big investment banks reporting mixed results. Tesla is expected to report its quarterly results on Thursday early morning.
Oil prices fell steeply but recovered on Monday and Tuesday. Oil prices have seen volatility on concerns about global supply and rising worries that central bank efforts to tame surging inflation may trigger a recession that would cut future fuel demand. U.S. President Joe Biden visited top oil exporter Saudi Arabia last week, but the unofficial leader of OPEC did not give clear assurances of any output increase.