Forex Today 02/07: US Dollar Rebounds From 3.5-Year Low

2025-07-02 02:16:11

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The US Dollar continued to trading to new long-term lows in line with its bearish trend before rebounding sharply to trade higher,

For yet another day, the US Dollar Index fell to trade at a new 3.5-year low price. However, it then rebounded sharply to print a bullish pin bar and as the London session approached, the price was trading even higher. In the Forex market since today's Tokyo open markets are barely changed. Trend and momentum traders will be interested in considering whether to be long of the EUR/USD currency pair , which recently made a new long-term high above $1.1800. The GBP/USD currency pair is also bullish, but the price seems to have failed twice at the key resistance level of $1.3769.

Stock markets are continuing to look mostly bullish, especially in the wider US market, where although the tech-based NASDAQ 100 Index has slipped, the broader S&P 500 Index made a new record high yesterday. The S&P 500 Index just had its best quarter since 2023, increasing in value by more than 10% since April began. Trend and momentum traders will be interested in being long of these indices, and have a choice of CFDs, futures, or ETFs such as SPY and QQQ. Interestingly, tariff worries which may soon become realized do not seem to be weighing heavily on stocks, or at least, it is being overcome by fear of missing out.

US JOLTS (jobs) and manufacturing data released yesterday beat expectations, suggesting that the US economy is more buoyant than many analysts think, which could push towards more and earlier cuts, which should soften the greenback.

There will be a release today of the US ADP Non-Farm Employment Change forecast.

Silver continues to hold up from a supportive area centered on $36, while Gold starts to look more bullish as it rises for two consecutive days.

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