Forex Today: Dollar ´s sell-off nearing exhaustion

Here is what you need to know on Tuesday, July 28:

The market lacked fresh catalysts at the beginning of the week, and speculative interest chose to keep selling the greenback. The EUR/USD pair hit 1.2781 while GBP/USD traded as high as 1.2902. Both pair settled a few pips below their mentioned highs.

Commodity-linked currencies advanced within familiar levels against their American rival, as the poor tone of equities put a cap to their gains. Wall Street, however, managed to post some gains, with tech shares and the Nasdaq leading the way higher.

Safe-haven assets also won. The USD/JPY pair flirted with 105.00 and may continue falling, while gold soared to a record high of $1,945.60 a troy ounce, ending the day around 1,937.

The dollar sell-off is close to exhaustion, which means the market could correct in the upcoming sessions. That won’t mean a trend change.

Market players ignored macroeconomic data. The financial world was guided by the negative sentiment towards the greenback, amid tensions between the US and China, and the continued increase in coronavirus cases in the country. The market is expecting Q2 GDP in the country at -34%, a record historical plunge.

Crude oil prices remained within familiar levels ahead of a clearer picture. WTI remains above $ 41.00 a barrel.

The macroeconomic calendar will remain scarce this Tuesday, with expectations mounting ahead of the US Federal Reserve meeting next Wednesday.

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