Today's market focus shifts to Fed officials' speeches and upcoming US CPI data amid renewed US-Iran tensions.
Market Calendar: Key Events for July 13
The European session lacks major economic releases, with Federal Reserve Governor Christopher Waller's speech on economic outlook dominating the American session. Markets will also monitor upcoming US CPI data and Fed Chair Jerome Powell's testimony amid escalating US-Iran tensions.
European Session: Limited Activity
Monday's European trading hours offer minimal catalysts. Fed Governor Michelle Bowman is scheduled to speak at a Bank Policy Institute roundtable on financial regulation at 09:25 GMT. However, given the topic's focus on regulatory modernization, her remarks are unlikely to influence near-term monetary policy expectations or market sentiment.
American Session: Fed Waller Takes Center Stage
Fed Governor Waller's 16:30 GMT speech on economic outlook represents the day's primary market driver. Known for his forward-looking policy signals, Waller previously shifted to a dovish stance in early 2025 that preceded three rate cuts. His May pivot toward inflation concerns suggests potential guidance on the Fed's current policy trajectory.
Upcoming Catalysts
Traders will closely watch Tuesday's US CPI release and Fed Chair Powell's congressional testimony later this week. These events could clarify the Fed's inflation assessment and rate path amid persistent price pressures. Renewed US-Iran tensions add a geopolitical risk layer, potentially impacting safe-haven demand and commodity-linked currencies.
Implications for DXY
The dollar index (DXY) faces key technical and fundamental tests this week. Hawkish signals from Waller or Powell could support further dollar gains, particularly against EUR and GBP. Conversely, dovish undertones or geopolitical risk escalation may weaken the greenback. Current DXY levels near 106.50 will be critical for short-term directional bias.
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