Market Update - 24 July 2026

Markets are navigating a risk-off environment driven by escalating Middle East tensions and rising energy prices. Surging crude has reignited global inflation concerns, lifting bond yields and providing safe-haven support to the US Dollar while weighing on risk-sensitive currencies and equities.

1. Foreign Exchange (FX)

• US Dollar Index (DXY): Trading near 101.38. The Dollar remains firm, buoyed by safe-haven demand and higher Treasury yields as markets price in a potentially less dovish Federal Reserve.

• EUR/USD: Testing support near 1.1385. The Euro faces headwinds from high energy import dependency and domestic economic sluggishness following the ECB’s rate hold.

• GBP/USD: Trading around 1.3323. Sterling is slightly softer under broad USD strength, with Bank of England rate cut expectations keeping upside capped.

• USD/JPY: Holding elevated near 163.82. The Yen remains under pressure due to Japan's exposure to rising energy prices and persistent yield differentials.

• USD/INR: Steady around 96.87. Elevated oil prices around $100/bbl continue to anchor the Rupee near recent weak levels.

2. Commodities: Gold (XAU/USD)

• Spot Price: ~$4,044 - $4,050 / oz

• Daily Trend: Down ~0.1% to 2.0% across sessions.

• Drivers:

  • Gold saw profit-taking after testing higher levels, weighed down by a stronger USD and rising real Treasury yields.

  • However, underlying safe-haven bid and central bank accumulation continue to prevent sharper drawdowns, keeping prices well-supported above the key $4,000 mark.

3. Energy: Crude Oil (WTI & Brent)

• Brent Crude: ~$99.96 - $100.20 / bbl

• WTI Crude: ~$91.50 - $92.20 / bbl

• Drivers:

  • Crude continues its multi-day rally, breaking back through the $100/bbl psychological barrier on Brent.

  • Supply disruption risks in key shipping lanes and potential military escalations in the Middle East are maintaining a substantial geopolitical risk premium.

Summary Table