Forex Focus — Jul 18, 2026, 09:00 UTC

Transcript

Favorable PPI data just dropped, significantly reducing market expectations for further Fed rate hikes this year. This breaking news weighs on the Dollar Index, despite some mixed trading today. The DXY saw modest intraday gains, but the broader outlook shifts dovish. EUR/USD trades at 1.1436, down 10 pips, or 0.10%. The pair faces immediate resistance as dollar strength persists. However, dovish Fed signals could soon reverse this trend. Meanwhile, emerging market currencies exhibit unusual volatility. Global risk aversion continues to fuel carry trade unwinds across several exotics. On the central bank front, Fed Governor Jefferson reaffirmed the 2% inflation target. Yet, today's favorable PPI reading certainly lowers future tightening odds. Across Asia, South Korea's central bank is poised for a July 16 rate hike. This marks their first increase in three years, signaling regional policy divergence. For tomorrow, watch EUR/USD support at 1.1420. Resistance holds near 1.1450. That’s your Forex Focus. Stay informed with rawfin.tv.