On the forex front, the euro/U.S. dollar (EUR/USD) currency pair was consolidating above the 1.17 key level, GBP/USD was holding its own above 1.31, while the USD/JPY was clinging onto key support at 110.35. Gold has started a touch weaker after closing up for the third straight week, while copper and crude oil were also in consolidation mode following their sharp recent gains.
The U.S. dollar is lower against the major pairs after the political uncertainty in Washington and mixed economic fundamentals took their toll on the greenback. The first week of August will be full of economic releases with major central banks on the agenda as well as the week wrapping up with the biggest economic indicator in the market, the United States Non-farm payrolls report.
Prior to the release of the July FOMC statement yesterday, the dollar had found some support and gold had weakened slightly. Market participants were wary of the possibility of a hawkish surprise, so they had taken profit on their short dollar positions. But once speculators realized that wasn't the case, they evidently re-established those positions and the dollar responded by dropping across the board.