Forex Today: Dollar to remain on the losing side

Valeria Bednarik FXStreet

What you need to know on Monday, August 2:

The American dollar got to advance on Friday, although ended the week with losses against its major rivals. The currency benefited from softer-than-anticipated US inflation figures, as the core PCE Price Index, the US Federal Reserve favorite inflation figure, printed at 3.5% YoY in June, ticking higher from the previous 3.4% but below the 3.7% expected. Month-end flows and profit-taking also helped the greenback. Nevertheless, its gains were moderated and uneven.

Wall Street edged lower while US government bond yields retreated amid cooling speculation for heating inflation. The EUR/USD pair flirted with 1.1900, as local GDP surpasses expectations in Q2. The GBP/USD pair heads into the weekly opening trading at around 1.3900 as the coronavirus situation in the UK keeps improving.

The Australian dollar was the weakest, with AUD/USD ending the week at 0.7330, as the aussie remains away from the investors’ radar, given the ongoing pandemic situation in the country. The CAD also fell against the greenback, but not after reaching fresh highs against its American rival.

Gold retreated sharply, ending the week at $1,814 a troy ounce. Crude oil prices held on to weekly gains, retreating just modestly ahead of the close. WTI settled at $73.70 a barrel.

The focus this week will be on the RBA and the BOE, as both central banks will announce its monetary policy decisions. On Friday, the US will publish the July Nonfarm Payroll report.

Dogecoin Price Prediction: DOGE preps up for a rally towards $0.30

Like this article? Help us with some feedback by answering this survey:

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD looks sidelined around 1.1850

EUR/USD remains on the back foot, extending its bearish tone and sliding towards the 1.1850 area to print fresh daily lows on Monday. The move lower comes as the US Dollar gathers modest traction, with thin liquidity and subdued volatility amplifying price swings amid the US market holiday.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.