Forex Today: Dollar weakens as investors await Powell

Valeria Bednarik FXStreet

What you need to know on Thursday, August 26:

The greenback seesawed between gains and losses but resumed its decline during US trading hours to reach fresh weekly lows against most high-yielding rivals. Wall Street rallied, with the S&P 500 hitting fresh all-time highs.

US Treasury yields also run, with the yield on the 10-year note reaching 1.352%.

Commodity-linked currencies were the best performers, as AUD/USD reached 0.7280 while USD/CAD trades around 1.2590. The EUR/USD pair slowly advanced, currently trading at around 1.1770. GBP/USD extended its advance to the 1.3760 price zone.

Gold settled at around $1,790 a troy ounce, down for the day, while crude oil prices edged higher, with WTI ending the day at $68.20.

The coronavirus Delta variant keeps worrying speculative interest. A study developed in the UK showed that protection from vaccines wanes after six months of receiving the shots. Meanwhile, Johnson & Johnson is recommending a second shot to boost immunity to its one-dose vaccine.

The Jackson Hole Symposium kicks in this Thursday, although the main event will be US Federal Reserve Chair Jerome Powell speech on Friday.

Crypto Blades and Axie Infinity go to war for NFT market share while AXS price suffers steep correction

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 remains on the back foot near 1.1750

EUR/USD is coming under renewed pressure, sliding towards multi-week lows in the mid-1.1700s on Thursday. The move lower reflects another strong session for the US Dollar, with the Greenback drawing fresh support from a batch of firm US data that reinforced its underlying bid.

GBP/USD drops further, hovers around 1.3460

GBP/USD is sliding in tandem with its risk-sensitive peers, drifting back towards the 1.3440 area, its lowest levels in around four weeks. The move reflects a firmer Greenback, supported by another round of solid US data, while a somewhat divided FOMC Minutes has added an extra layer of uncertainty around the Fed’s rate path, keeping Cable on the defensive.

Gold struggles to overcome $5,000

Gold is trading with humble gains on Thursday, hovering around the key $5,000 mark per troy ounce. The yellow metal remains underpinned by renewed geopolitical tensions in the Middle East, even as a stronger US Dollar and rising US Treasury yields across the curve limit the upside and keep price action relatively contained.

Ripple slips toward $1.40 despite SG-FORGE tapping protocol for EUR CoinVertible

XRP extends its decline, nearing $1.40 support, as risk appetite fades in the broader market. SG-FORGE’s EUR CoinVertible launches on the XRP Ledger, leveraging the blockchain’s scalability, speed, security, and decentralization.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.