It’s the end of the month. During the month, the
- The Fed increased by 75 basis points,
- The ECB launched a higher than expected hike of 50 basis points.
- RBA raised by 50 bps
- RBNZ up 50 bps
- BOC lifted by 100 BPS surprise
The BOE did not hold a rate meeting in July (it will meet on August 4). The BOJ kept its policy unchanged during its meeting and is expected to remain so in the future.
So how did the USD end the month?
The US dollar index rose slightly from start to finish. Overall, the USD closed up around 1.16%. Of course, this index is weighted more towards the EURUSD which has seen the USD rise by around 2.58%. Other currencies saw the USD decline. In fact, the dollar fell against the JPY, CHF, CAD, AUD and NZD. It was almost unchanged against the GBP.
What were the changes of the month for the other majors compared to the greenback?
- EURUSD. -2.58%. As mentioned, the EURUSD fell -2.58% despite the higher than expected ECB hike. Of course, they continue to feel the pinch of war in Ukraine and Russia’s shenanigans over the Nord stream 1 gas pipeline that has investors wary of growth prospects. although Q2 GDP is better than expected today.
- GBPUSD. Unchanged. The GBPUSD closed last month at 1.2178. The current price is at 1.2171, virtually unchanged over the month. During the month, PM Johnson resigned as PM. A new leader is between Rishi Sukan and Liz Truss with Truss the favorite
- USDJPY. -1.71% Although the BOJ remains unchanged and the USDJPY hits a new high since 1998, the USDJPY ends down -1.71% (dollar lower). USDJPY closed at 135.75 last month and is trading at 133.32 today. The past two trading days have seen the pair turn from positive to negative. The low of the month was reached today. Lower US rates helped.
- USDCHF. -0.35%. USDCHF closed last month at 0.9549. The currency pair closes below this level at 0.9512 or down -0.35% USD). However, between June 30 and July 29, the price rose to a mid-month high of 0.9886 reached on July 14 and spent the next 11 trading days retracing those gains. Today’s move lower took the price to a new low for the month at 0.9501 and pushed the pair into negative territory.
- USDCAD. -0.61%. The USD fell -0.61% against the CAD. The pair closed on June 30 at 1.2874. The pair is currently trading at 1.2796. Today the pair traded at a monthly low of 1.2788. In between, the pair hit a high of 1.3223 which was the highest level since November 2020 (reached on July 15) before reversing lower and erasing all those gains and more.
- AUDUSD. -1.25%. The USD ends the month down against the AUD by -1.25%. The AUDUSD closed on June 30 at 0.69046 and is currently trading at 0.6994. Lower rates and a sense of risk helped push the pair higher (lower US Dollar) in the latter half of the trading month.
- NZDUSD: -0.79%. The USD fell -0.79% against the NZD this month. The pair closed at 0.6245 on June 30 and is currently trading at 0.6294. Like many other pairs, the USD initially rallied, hitting NZDUSD at 0.6060 on July 14 before rallying during the month. Today’s high at 0.6329 was the month’s high before falling back down to 0.6294. Like the AUDUSD, sentiment risk/lower US rates helped the pair rally late in the month (USD lower).