As the Japanese currency continues to appreciate, the Greenback struggles, causing USD/JPY to drop to new two-month lows near the 153.00 region. Additionally, poor PMIs in the euro area dampen hopes of a sustained recovery in the region.

Key Events for Thursday, July 25:

The USD Index (DXY) sees a slight decline due to the Japanese yen’s strength and mixed US yields. On July 25, keep an eye on the advanced Q2 Growth Rate, Durable Goods Orders, and weekly Initial Jobless Claims.

EUR/USD tests the 200-day SMA near 1.0820 as it faces losses ahead of key US data releases. Germany’s IFO Business Climate and a speech by the ECB’s Lagarde are also on the agenda for July 24.

GBP/USD hovers around 1.2900 amid fluctuating risk appetite trends, with the CBI Industrial Trends Orders expected on July 25.

USD/JPY nears two-month lows around 153.00, driven by the Japanese yen’s strength. Weekly Foreign Bond Investment figures are the only Japanese data due on July 25.

AUD/USD falls below the 0.6600 level, hitting the key 200-day SMA and reaching six-week lows. No data releases are scheduled in Australia on July 25.

WTI prices bounce back and retest the $78.00 mark per barrel after four days of decline.

Gold prices reach three-day highs near $2,430 per ounce but retreat as the dollar gains late strength. Silver prices drop below $29.00 per ounce after Tuesday’s gains.

Analysis:

The Japanese yen’s appreciation continues to impact the USD/JPY pair, pushing it to new lows. Investors should monitor key economic events such as the Q2 Growth Rate and Durable Goods Orders for potential market shifts. The euro area’s poor PMIs add to the uncertainty, while fluctuations in risk appetite affect GBP/USD. Gold and silver prices are influenced by the dollar’s performance, highlighting the importance of monitoring currency trends for investment decisions.

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