Investinglive Americas FX news wrap 24 Jul; ECB kept rates unchanged | investingLive
The ECB kept rates unchanged. ECB President Christine Lagarde delivered a cautiously optimistic outlook, noting stronger-than-expected 0.6% Q1 euro area growth, supported by consumption, investment, and a strong labor market. She acknowledged downside risks from higher tariffs, a stronger euro, and geopolitical uncertainty, but also highlighted potential upside if those risks are resolved.
On inflation, Lagarde said it appears to be stabilizing around the 2% target, with moderating labor costs and improved productivity helping ease pressures. Still, she flagged heightened uncertainty due to bottlenecks and unknown tariff effects.
Lagarde confirmed the ECB is not pre-committing to a rate path, emphasizing a data-dependent approach. The current policy stance was unanimously supported, and she said the ECB is in a “good place” to hold steady and monitor how risks unfold. Minor inflation deviations won’t prompt immediate action, and retaliatory tariffs remain optional.
An ECB sources report said that September is looking like unchanged as well after moving rates from 4.5% to 2.15%.
The EURUSD had a down, up and down session with new lows made at 1.1729 before running to new highs for the day at 1.1787 which was near the last swing highs going back to early July. The day ended with a move back down with the price trading nearer the lows at 1.1749. Support is at 1.1725 in the new trading day with resistance at 1.1788.
The GBPUSD moved steadily to the downside today closing near the lows for the day and near the 100 hour MA at 1.3505. That area (down to 1.3500) will either hold and bounce or continue to move lower and open the door for more downside momentum.
The USDJPY rebounded higher and looks to the falling 100-hour MA at 147.106.
Looking at other markets, the US stock market closed mixed with the Dow falling from what was near record levels yesterday. The Dow fell -316.38 points or -0.70%. The S&P was up modestly by 0.07% and closed at a record level. The Nasdaq was up 0.18% and it too closed at a new record. level.
European indices were mixed with France and Italy falling. Spain and the UK were the biggest gainers today.
Yield were higher in the shorter end, but the 30 year is down 1 basis point. The 2 year is up 3.2 basis points.
On the economic front, the US initial jobless claims continued its rotation back down and below 220K to 217K. Recall it was pushing 250K not long ago, but is now lower again.
New home sales mirrored the existing home sales from yesterday with a decline.
Crude oil banged the 100 day MA to start the week (at $64.92), but moved higher today as sellers gave up, and buyers took charge (at least for now). Crude is trading at $0.78 at $66.03. The 200 day moving averages about $68.03.