According to BlockBeats, on July 19, in the coming week, the manufacturing and services PMI for the U.S. and Europe will provide any signs regarding the impact of Trump's tariff policies. On the central bank front, the Federal Reserve is entering the quiet period ahead of the July meeting, but the Fed Chairman Powell, who has recently been embroiled in a public relations storm, will make an appearance, and market participants will hold their breath to see if he will respond to Trump's recent attacks. The European Central Bank will announce its latest interest rate decision.
Tuesday 20:30, Federal Reserve Chairman Powell delivers a welcome speech at a regulatory meeting;
Thursday 20:15, European Central Bank announces interest rate decision; 20:45, ECB President Lagarde holds a monetary policy press conference;
Thursday 20:30, Initial jobless claims in the U.S. for the week ending July 19.
This week, reports indicate that Trump has discussed the idea of firing Powell with other Republicans. However, he quickly downplayed these discussions, stating it is 'highly unlikely' that he would fire Powell. If Powell insists on defending the independence of the Federal Reserve and reiterates the need to be patient and wait for more data to show the impact of tariffs, the dollar is likely to extend its recovery.
That said, it is still too early to start discussing a bullish reversal for the dollar. Although this global reserve currency has reacted positively to recent tariff-related headlines, if tariffs begin to exacerbate concerns about a recession, traders may still start to react as they did in April, which is to sell the dollar.