Forex Today: USD bulls rescued by NY Fed while Gold takes a breather

• US dollar index offered reprieve by the NY Fed’s clarification on President Willian’s comments.
• Gold consolidates the rally to 2019 highs.
• All eyes on trade and geopolitical developments.

Here is what you need to know to start your day on Friday, July 19th, European session: 

- US dollar bounced vs. main competitors after the NY Fed disavowed President Williams’ preventive rate cut comments, Treasury yields looked to stabilize.

- USD/JPY jumped off 107.21 lows, a dead cat bounce amid aggressive July Fed rate cut calls? Japanese CPIs matched estimates.

- Asian equities cheered risk-on. Aussie’s upside capped near 0.7080 amid trade anxiety. Kiwi bulls faced rejection just below 0.68 handle.

- US-China officials discussed trade; Mnuchin eyes possible in-person talks. Japan urged S. Korea envoy to act amid escalating trade row over wartime forced labor.

- UK: The Cable consolidated the recovery amid upbeat UK retail sales data and mounting Hard Brexit risks.

- Oil prices extended the corrective upside after US Navy ship 'destroyed' Iranian drone in Gulf, ignored IEA 2019 oil demand forecast downgrade. Gold pulled back from 2019 highs of $1452.

- Cryptocurrencies consolidated the latest upmove. Bitcoin capped below 11k.

Key events to watch