EUR/USD, GBP/USD, DXY Price Forecast: DXY Surges to $103.24; Buy Now?

Recent economic data from Europe and the UK has painted a mixed picture for their respective currencies. Germany’s industrial production rose by 1.4% in July, surpassing expectations of 1.0% and showing a recovery from June’s 3.1% decline.

However, the German trade balance showed a surplus of €20.4 billion, slightly below the forecast of €21.7 billion. Meanwhile, the French trade balance improved slightly to -€6.1 billion, beating expectations.

In the UK, the Halifax House Price Index increased by 0.8%, well above the anticipated 0.2%, signalling resilience in the housing market.

Events Ahead

Looking ahead, key U.S. data will likely influence currency markets. The U.S. is expected to report a decline of 1.6 million barrels in crude oil inventories, which could affect inflation expectations. The 10-year bond auction and consumer credit data will also be watched closely.

The GBP/USD is currently trading at $1.27110, with a potential upward move if the UK’s RICS House Price Balance shows less decline than anticipated. The EUR/USD, priced at $1.09103, remains under pressure amid stronger U.S. economic forecasts.

The Dollar Index, at $103.241, could continue its ascent if U.S. economic data exceeds expectations, reinforcing the dollar’s strength against the euro and the pound.