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