Foreign Exchange Market Update

July 20, 2026

U.S. (United States) Dollar Drops as Soft Inflation Dims Fed Hike Bets

Better inflation readings from the U.S. aided and abetted the dollar's mild retreat during the week ending on July 17. The market reduced the perceived likelihood of a Federal Reserve rate hike amid softer levels of consumer price inflation and producer price inflation in the U.S. However, the fresh flare-up in the Middle East as well as the haven demand and crude oil price spike that followed limited the U.S. dollar's decline.

During the week ending on July 17, the U.S. dollar inter alia declined against the euro, the British pound, the Australian dollar, the Canadian dollar, the Swiss franc as well as the Swedish krona. However, it rallied against the Japanese yen. As a result, the Dollar Index, which measures the Dollar's strength against a basket of 6 currencies, dropped close to a quarter percent weekly. 07/20/2026 - 06:32:00 (RTTNews)

Germany Producer Prices Rise for Third Month

Euro traded at 1.1413 against USD at 9:00 AM PST

Germany's producer prices increased for the third straight month in June. Producer prices grew at a pace of 1.8% yearly in June, slower than the 2.2% increase in May. This was the third consecutive rise in prices. Monthly, producer prices dropped 0.3%.

The annual increase in producer prices was primarily driven by higher prices of intermediate goods and energy prices. Prices of intermediate goods were up 5.1%, and energy prices increased 0.4%. Capital goods were 2.1% more expensive in June than a year ago. Durable consumer goods prices moved up 1.8%. Meanwhile, non-durable consumer goods prices dropped 2.2%. 07/20/2026 - 02:38:00 (RTTNews)