Forex Today: Canadian inflation figures take centre stage

Pablo Piovano FXStreet

The US Dollar (USD) managed to leave behind part of Friday’s retracement, regaining upside impulse in a context of heightened caution ahead of the Trump-Zelenskiy gathering and the upcoming Jackson Hole Symposium.

Here's what to watch on Tuesday, August 19:

The US Dollar Index (DXY) picked up modest upside momentum at the beginning of the week, briefly surpassing the key 98.00 hurdle amid marginal gains in US yields across the curve. Housing Starts and Building Permits should leave the attention on the housing market, ahead of the API’s weekly report on crude oil inventories and the speech by the Fed’s Bowman.

EUR/USD traded on the back foot, with the topside so far capped by the 1.1700 resistance, always following the stronger US Dollar. Current Account results in the broader Euroland are due.

GBP/USD surrendered part of recent gains and returned to the vicinity of 1.3500, hitting three-day lows. Next of note on the UK docket will be the crucial Inflation Rate on August 20.

USD/JPY flirted with three-day highs near the key 148.00 mark, bolstered by the firm performance of the US Dollar. Next on the Japanese calendar will be the Balance of Trade results and Machinery Orders on August 20.

AUD/USD could not sustain the early move to two-week highs near 0.6570, succumbing to the selling pressure and ending the day around the 0.6500 region. The Westpac Consumer Confidence gauge, Consumer Inflation Expectations and the speech by the RBA’s Connolly are next on tap in Oz.

USD/CAD traded in an inconclusive tone around the 1.3800 region, extending its ongoing range-bound theme. July's Inflation Rate in Canada will be the salient event.

Prices of the barrel of WTI receded to the area of three-month lows and were headed toward the $61.00 mark on Monday, as traders kept their attention on the Trump-Zelenskiy meeting.

Gold prices retreated modestly and revisited the $3,330 zone per troy ounce in quite an inconclusive session on Monday, with investors closely following geopolitics and the upcoming Jackson Hole Symposium. Silver prices clocked humble gains, managing to reclaim the $38.00 mark per ounce and beyond.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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