It is month end. During the month, the

  • Fed rose by 75 basis points,
  • ECB launched with a higher than expected 50 basis point hike.
  • RBA raised by 50 BPS
  • RBNZ raised by 50 BPS
  • BOC raised by a surprise 100 BPS

The BOE did not have a rate meeting in July (they will meet on August 4). The BOJ kept policy unchanged when they met and are expected to stay that way going forward.

So how did the USD end the month?

The US dollar index rose modestly from the start to finish. Overall, the USD closed higher by about 1.16%. Of course that index is weighted more toward the EURUSD which saw the USD move up by about 2.58%. Other currencies saw the USD move lower. In fact, the dollar fell vs the JPY, CHF, CAD, AUD, and NZD. It was near unchanged vs the GBP.

What were the changes for the month for the other majors vs the greenback?

  • EURUSD. USD +2.58%. As mentioned the EURUSD fell by -2.58% (USD rose) despite the higher than expected hike by the ECB. Of course they continue to feel the pinch from the Ukraine war and the shenanigans from Russia regarding the Nord stream 1 pipeline which has investor wary of the growth prospects although the GDP for the 2nd Q came in better than expected today.
  • GBPUSD. Unchanged. The GBPUSD closed last month at 1.2178. The current price is at 1.2171, nearly unchanged on 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. USD -1.71% Despite the BOJ staying unchanged, and the USDJPY moving to a new high going back to 1998, the USDJPY is ending lower by -1.71% (dollar lower). The USDJPY closed at 135.75 last month and is trading at 133.32 today. The last two trading days has seen the pair move from positive to negative. The low for the month was reached today. Helping was lower US rates.
  • USDCHF. USD -0.35%. The USDCHF closed last month at 0.9549. The currency pair is closing below that level at 0.9512 or down -0.35% USD lower). However in between June 30 and July 29, the price moved to a high price of 0.9886 reached around mid month on July 14, and has spent the next 11 trading days retracing those gains. Today's move to the downside took the price to a new low for the month at 0.9501 and pushed the pair into negative territory.
  • USDCAD. USD -0.61%. The USD moved lower vs the CAD by -0.61%. The pair closed on June 30 at 1.2874. The pair is currently trading at 1.2796. Today, the pair traded to the low for the month at 1.2788. In between the pair moved to a high of 1.3223 which was the highest level since November 2020 (reached on July 15) before rotating back to the downside and erasing all those gains and more.
  • AUDUSD. USD -1.25%. The USD is ending the month lower vs the AUD by -1.25%. The AUDUSD closed on June 30 at 0.69046 and is trading currently at 0.6994. Lower rates and risk-on sentiment helped to push the pair higher (lower US dollar) over the last half of the trading month.
  • NZDUSD: USD -0.79%. The USD fell by -0.79% vs the NZD this month. The pair closed at 0.6245 on June 30 and is currently trading at 0.6294. Like many of the other pairs, the USD moved higher first bottoming the NZDUSD at 0.6060 on July 14 before rallying into the month and. Today's high price at 0.6329 was the high price for the month before settling back down at 0.6294. Like the AUDUSD, risk on sentiment/lower US rates helped the pair rally into month end (lower USD).