Forex Today: Dollar wins amid Delta covid woes, stimulus optimism, all eyes on US inflation

Dhwani Mehta FXStreet

Here is what you need to know on Wednesday, August 11:

Cautious optimism remains the underlying theme amid the passage of the US $1 trillion infrastructure bill and Delta covid variant flareups in the US and Asia-pac regions. Meanwhile, investors also turn cautious ahead of the all-important US Consumer Price Index (CPI) data due for release on Wednesday at 1230 GMT.

The Asian indices trade mixed while the S&P 500 futures post small losses. US Treasury yields keep pushing higher, with the 10-year rates hitting the highest level since early July. The US dollar consolidates the upside on expectations of earlier than previously thought Fed’s tapering, in light of stronger employment data.

Hawkish Fedspeak also continues to underpin the dollar’s demand. Chicago Fed President Charles Evans said that he expects substantial further progress later in the year on asset tapering.

Later this Wednesday, Atlanta Fed President Raphael Bostic is due to speak speaking on "The Federal Reserve's Role in Making This an Economy That Works for Everyone" at 1430 GMT. Kansas City Fed President Esther George will speak on "A View from the Federal Reserve Bank of Kansas City “at 1600 GMT.

Gold is making another recovery attempt towards $1750. WTI is hovering around $68, reversing a part of Tuesday’s rebound, despite a drawdown in the API crude stockpiles.

Within the G10 currencies basked, subdued trading ranges are seen, as the US dollar is holding steady after the recent upsurge.

AUD/USD is the weakest and remains pressured below 0.7350, as Melbourne extended covid lockdown by another seven days. New South Wales (NSW) continues to report over 300 new cases daily basis.

EUR/USD is trading listlessly above 1.1700, fresh five-month lows, in response to strengthening yields and the dollar. Meanwhile, the German ZEW Survey disappointed on Tuesday.

GBP/USD remains pressured towards 1.3800 amid impending Brexit concerns, which outweigh the vaccine optimism within the country. The UK government could likely extend the emergency powers for trucks heading into France in a move to use Brexit rights, “signaling the government expects further cross-Channel disruption,” The Guardian reports.

Cryptocurrencies remain rangebound at higher levels, with Bitcoin languishing between $45K-$46K.

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

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

AUD/USD stays bid above 0.7100 on Australian trade data, Mideast optimism

AUD/USD clings to minor recovery gains above 0.7100 in the Asian session on Thursday as a new Israel-Lebanon ceasefire keeps a lid on the safe-haven US Dollar. Meanwhile, strong AustralianTrade Balane data also help the Aussie pair sustain the bounce from weekly lows.

USD/JPY hovers near the 160.00 intervention threshold on Mideast tensions

USD/JPY struggles to find acceptance above 160.00 and retreats from a one-month high in the Asian session on Thursday amid fears that authorities will step in again to prop up the Japanese Yen. Furthermore, a new Israel-Lebanon ceasefire caps the US Dollar and supports the currency pair. However, renewed US-Iran tensions keep the downside limited in the Greenback and the pair.

Gold defends 200-day SMA; upside seems capped on Iran uncertainty

Gold recovers from a one-week low near $4,425, or the 200-day SMA, in the Asian session on Thursday, as news of an Israel-Lebanon ceasefire acts as a headwind for the safe-haven US Dollar. However, renewed hostilities in the Gulf, along with stalled US-Iran peace talks, keep geopolitical risks in play and should support the USD, checking the Gold price rebound.

Ethereum: Long-term holders' capitulation drives ETH below $1,800

Ethereum has fallen below $1,800 on Wednesday, the first time since May 2025 following accelerated spot selling pressure and distributions from long-term holders. The Age Consumed metric, which tracks the movement of previously idle tokens or long-term holders' coins, spiked over the past two days as prices declined, indicating increased selling activity among this cohort.

Kevin Warsh takes the Fed helm: What it means for the US Dollar

The Federal Reserve moves away from the highly predictable "forward guidance" model of the Jerome Powell era to a new “Kevin Warsh environment”, characterized by less communication, more policy surprises, and an increased focus on the Fed's complex balance sheet.

Recession on paper: What really moves the Canadian Loonie now?

Statistics Canada handed the headline writers a gift and the analysts a headache. Real GDP shrank 0.1% on an annualized basis in the first quarter, and with the fourth quarter of 2025 revised down to a 1.0% contraction, that is two negative quarters in a row, the textbook definition of a technical recession and Canada's first since the pandemic.