In June, orders for durable goods in the United States, not counting transportation, rose by 0.2%. This was better than the expected increase of 0.1%. The EUR/USD exchange rate stays above 1.1700, although it’s facing slight downward pressure. Meanwhile, the GBP/USD is aiming for the 1.3400 level after weak retail sales data from the UK. Gold prices are declining for the third day in a row, hitting weekly lows around $3,330 per troy ounce. The strength of the US Dollar and mixed yields are leading to a bearish outlook for gold.

Cryptocurrency Market Update

In the cryptocurrency market, Bitcoin dropped to an intraday low of $114,723 but shows some signs of recovery. Ethereum and XRP have held important support levels despite the market’s cautious approach. The Federal Reserve is being criticized for its delay in rate cuts due to ongoing tariff uncertainties, although a strong economy gives some reason for this approach. However, concerns about the labor market may lead to further delays in policy changes. A guide is available for the best forex and asset trading brokers in 2025, featuring those with competitive spreads, quick execution, and user-friendly platforms for both beginners and experienced traders. With strong business investment recently, we believe the Federal Reserve can justify its cautious approach to interest rates. The latest non-farm payroll report showed that 272,000 jobs were added in May, greatly exceeding predictions. This robust job growth supports the case for postponing any policy easing, suggesting a “higher for longer” interest rate environment.

Currency And Asset Outlook

This policy approach continues to boost the strength of the US Dollar. The Dollar Index (DXY) has recently remained steady above 105.5. Because of this, we expect ongoing pressure on the EUR/USD, especially since the European Central Bank started cutting rates in early June. Strategies that favor the Dollar against the Euro appear wise in the upcoming weeks. We also foresee potential weakness for the British Pound, despite a recent rise in UK retail sales. The Bank of England faces ongoing inflation challenges that complicate its policy decisions, creating a gap with the more aggressive American central bank. Historically, such divergences tend to weigh down the GBP/USD pair, which is currently struggling to stay above 1.2700. The strong dollar and firm Treasury yields, particularly with the 10-year note around 4.25%, create tough conditions for gold. The precious metal is now trading near $2,320 per ounce after failing to maintain higher prices, making it less appealing as the opportunity cost of holding a non-yielding asset rises. We expect this pressure to limit any major rallies in gold prices. In the cryptocurrency market, a general trend of caution is noticeable, as Bitcoin fights to stay above $64,000. Historically, tight monetary policy and a strong dollar reduce interest in speculative assets. Therefore, we recommend exercising caution, as digital assets might face additional declines if macroeconomic uncertainties continue. Create your live VT Markets account and start trading now.

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