Here is what you need to know on Tuesday, August 16:

The dollar stays relatively quiet early Tuesday as markets await the next significant catalyst. The US Dollar Index gained more than 1% in the two-day recovery that started on Friday and was last seen moving sideways near 106.50. The European economic docket will feature the ZEW Survey results for the euro area and Germany. In the second half of the day, the US Census Bureau will publish the Housing Starts and Building Permits data for July. Meanwhile, markets remain cautious in the European morning with US stock index futures losing between 0.06% and 0.16%. Finally, the benchmark 10-year US Treasury bond yield stays flat below 2.8%.

Although safe-haven flows dominated the financial markets for the majority of the day on Monday, Wall Street's main indexes managed to close the day modestly higher. China’s state planner National Development and Reform Commission (NDRC) announced multiple measures to avoid recession fears as it said, “We pledge to keep the economy within reasonable bounds.” According to Reuters, the NDRC approved 65 fixed-asset investment projects worth a total of 1.028 trillion yuan from January to July and approved 8 fixed-asset investment projects worth a total of 236.8 billion yuan in July. Nevertheless, the Shanghai Composite Index was flat on the day at the time of press.

AUD/USD lost nearly 100 pips on Monday and failed to stage a rebound. During the Asian session, the Reserve Bank of Australia's (RBA) monetary policy meeting minutes showed that policymakers were ready to take further tightening steps. The RBA, however, reiterated that they were not on a pre-set path. As of writing, the pair was down 0.15% at 0.7015 on the day.

Falling crude oil prices weighed heavily on the loonie on Monday and USD/CAD climbed above 1.2900. Pressured by the worsening demand outlook and prospects of Iranian oil entering the market, the barrel of West Texas Intermediate fell more than 4% on Monday before recovering toward $88.50 on Tuesday. Later in the session, Statistics Canada will release the Consumer Price Index data for July.

Following Monday's steep decline, EUR/USD stays quiet near 1.0150 early Tuesday. 

GBP/USD dropped to its weakest level in more than a week at 1.2035 during the Asian trading hours on Tuesday. Although the pair managed to recover to 1.2050, it's struggling to gather recovery momentum.

USD/JPY fluctuated in a relatively wide range on Monday but closed the day virtually unchanged near 133.50. The pair is having a hard time making a decisive move in either direction early Tuesday. 

Gold suffered heavy losses and dropped toward $1,770 on Monday. With the 10-year US T-bond yield edging lower during the American trading hours, XAU/USD edged slightly higher and steadied near $1,780.

Bitcoin struggled to build on the previous week's gains on Monday and seems to have gone into a consolidation phase at around $24,000 on Tuesday. After having failed to break above $2,000 Ethereum edged lower and was last seen losing 1% on the day at $1,880.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD stays below 0.9800 after US inflation data

EUR/USD stays below 0.9800 after US inflation data

EUR/USD continues to trade in negative territory below 0.9800 in the American session on Friday. The data from the US showed that the annual PCE inflation declined to 6.2% in August but the stronger-than-expected core reading didn't allow the pair to gain traction.

EUR/USD News

GBP/USD rebounds from daily lows, reclaims 1.1100

GBP/USD rebounds from daily lows, reclaims 1.1100

GBP/USD fell to a fresh daily low below 1.1030 but managed to reverse its direction and climbed above 1.1100 during the American trading hours on Friday. The pair remains on track to snap a two-week losing streak despite having suffered heavy losses earlier in the week.

GBP/USD News

Gold extends daily rally beyond $1,670

Gold extends daily rally beyond $1,670

Gold preserved its bullish momentum and rose above $1,670 after the mixed inflation data from the US on Friday. The benchmark 10-year yield is down more than 2% as markets look to wrap up the third quarter, fueling XAU/USD's daily rally. 

Gold News

Shiba Eternity download day the biggest bullish catalyst in SHIB history?

Shiba Eternity download day the biggest bullish catalyst in SHIB history?

Shytoshi Kusama, the project lead for Shiba Inu, has dropped a teaser about Shiba Eternity games for the SHIB community. Proponents expect the launch of the collectible card game to be a bullish catalyst for Shiba Inu price. 

Read more

SPDR S&P 500 ETF Trust (SPY) Forecast: We are teetering on the brink

SPDR S&P 500 ETF Trust (SPY) Forecast: We are teetering on the brink

Equity markets remain at the precipice of a technical collapse, which we examine in the weekly long-term chart below. The overall picture remains one of nervousness ahead of the upcoming Q3 earnings season.

Read more

Forex MAJORS

Cryptocurrencies

Signatures