Trade ideas thread – European session 25 July 2023 | Forexlive

Have we already gotten to the pre-Fed lull period in markets? I reckon so. The dollar sort of held its ground yesterday, with the move lower in USD/JPY being pared back before the end of the day. The pair is at around 141.40 levels now, consolidating gains after the rebound from last week.

The euro and pound are slightly lower and looks to invalidate the upside breaks that we saw earlier this month. The drag last week took price back below the 200-week moving averages for both the EUR/USD and GBP/USD. The latter even posted a daily drop for seven straight days, the worst run since 2020.

As much as the dollar seemed like it was going to break down, economic circumstances continue to rule that the US is perhaps in less bad shape among the poor conditions in major economies as of late. And that perhaps stands for something. That will be a factor of consideration alongside the Fed decision this week.

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