Thursday July 17 opened with major currencies on edge. Investors were still reeling from the previous day’s swings amid Fed leadership uncertainty and fresh trade tensions. President Trump’s comments about potentially firing Fed Chair Powell kept the dollar on fragile footing, and new U.S. tariffs on Canadian imports were announced. On top of that, key scheduled releases (UK labour data, Eurozone inflation, and U.S. retail sales) made traders cautious. Ahead of the London session, markets were quietly positioned for shocks: a weak jobs report or inflation surprise could reignite volatility.
EUR/USD
By early Thursday, EUR/USD was hovering around the 1.1620–1.1640 area. The pair had earlier rallied to multi-year highs (around 1.1826) and then collapsed as risk events unfolded, finding support near 1.1575. On the M5 chart, price consolidated in a tight range after the overnight drop.
A break above 1.1640 would challenge last week’s swing highs, while a slip below 1.1600–1.1575 (yesterday’s low) would expose more downside. Throughout 17 July, EUR/USD showed low volatility and little trend: candles were small and indecisive. Momentum indicators were flat, reflecting an uneasy pause after Wednesday’s big moves. In sum, EUR/USD drifted sideways near 1.1625 (as Reuters noted on Thursday morning), finding short-term support just above 1.1600 and resistance near 1.1640.
GBP/USD
GBP/USD opened near 1.3410 and traded slightly lower into the London session. The pair had spiked up to roughly 1.3480 on Wednesday and then turned sharply lower. On Thursday morning, it formed a mild downtrend channel on the M5 chart, with lower highs around 1.3415 and support around 1.3360–1.3370 (the prior low). Traders watched the psychological 1.3400 level: holding below it suggested sellers were still in control after the UK jobs miss. Conversely, a rally above 1.3425 could lift the tone (though that did not materialize early in the session).
Overall volatility was muted on 17 July: the candles were short and narrow, indicating that the large moves of Wednesday had subsided. As Reuters reported, sterling was trading around $1.3395 in the early European session. In summary, GBP/USD was rangebound near 1.338–1.342, with support near 1.3360 and resistance near 1.3480, and a slight downward bias prevailing as bulls paused after the previous day’s swings.
USD/CAD
USD/CAD remained in an upward bias on Thursday morning. The chart showed a recent low near 1.3640 and a high around 1.3780, with the overnight move pushing price back up toward 1.3710. Early on the 17th, USD/CAD traded above 1.3680 and inched higher; this kept the uptrend intact. Key resistance was seen around 1.3750 (a level where price had stalled briefly before), while near-term support was around 1.3680 and stronger support at 1.3640. The pair’s candles on Thursday were modestly bullish, reflecting a steady recovery in the U.S. dollar.
In terms of momentum, the upward move was gradual rather than explosive, but the bias was clear: USD strength was gradually overcoming CAD weakness. Traders likely eyed a close above 1.3750 to fuel more gains. In summary, USD/CAD was trending higher on 17 July, with 1.3680–1.3700 as support and 1.3750+ as resistance.
News Impact Overview
Several fundamental stories on July 17th influenced these pairs, aligning with the intraday moves. First, early on Thursday the UK reported a sharply weaker labour market. The jobless rate unexpectedly jumped to 4.7% (highest in years) while payrolls fell by 178,000. This data arrived in pre-market hours (around 7:00 GMT) and immediately weighed on GBP. Indeed, GBP/USD was already falling through 1.3400 as the report leaked or was digested, reinforcing the downtrend on the chart. By comparison, EUR/GBP ticked up, but EUR/USD hardly reacted (USD was firming on other news).
Shortly thereafter, traders got one of the key political headlines of the day: President Trump denied any plan to fire Jerome Powell. The previous day’s rumor had sent the dollar plunging and bonds rallying, so the clarification spurred a knee-jerk USD recovery. On the chart, this showed up as a modest bounce in USD/CAD (and USD/JPY, though not our pairs here) around 05:00 GMT. Reuters specifically noted the greenback’s “meagre recovery” after Trump’s statement. By Friday’s Asian session the dollar had clawed back some losses. In forex terms, EUR/USD and GBP/USD both pulled back slightly in response (e.g. EUR/USD trading near 1.1625, GBP/USD near 1.3395) as USD demand picked up.
Later in the day, U.S. economic data had mixed effects. The weekly Initial Jobless Claims (8:30 ET) came in higher than expected: 233K versus 227K forecast. This hinted at a softer U.S. labour market, which might have pressured USD. However, at 12:30 ET Retail Sales surprised to the upside (+0.1% in June vs –0.9% expected). The strong retail number reaffirmed U.S. consumer strength. In our pairs, this relative U.S. resilience helped keep USD/CAD rising into the afternoon. By contrast, the mixed data on housing and trade had little immediate impact on GBP or EUR by then, so moves on the late chart were driven mainly by broad USD dynamics.
Finally, European inflation figures on Thursday showed that Euro-area headline CPI was roughly flat (around 2.0% YoY in June), in line with expectations. This meant the ECB likely stayed on hold, so EUR/USD did not spike in reaction. In summary, the day’s price swings were largely traced to the UK labour slump early on and the Fed/Powell headlines mid-session, with U.S. data providing a late-session boost to the greenback.
Summary
In short, July 17’s session was a lesson in how politics and data can interact. Technically, all three pairs traded in relatively narrow ranges early on after huge swings the day before. EUR/USD consolidated around 1.1620, GBP/USD eased under 1.3400, and USD/CAD extended its climb toward 1.3750. The big takeaway is that central bank uncertainty (and related newsflow) was keeping market participants cautious.
The US dollar remained sensitive to political noise: Trump’s comments stirred volatility and quick USD rebounds. Traders can learn that when fundamentals are mixed, technical levels (like the 1.1600 support on EUR/USD, 1.3400 on GBP/USD, 1.3680 on USD/CAD) become critical pivot points. Meanwhile, breaking news (Fed drama, tariff moves, surprise data) can abruptly shift momentum. Beginners should note how quickly a rumor about the Fed chair could reverse currency moves, even without any new economic report. In all, Thursday’s action reinforced the importance of watching both technical zones and the news calendar – one influenced these dollar pairs throughout the day.