Forex Today: FOMC´s easing cycle didn’t spook dollar bulls

FXStreet Team FXStreet

Here is what you need to know on Thursday, August 22nd:

-US President Donald Trump tweeted that they were doing “great” with China, saying that the main problem the US is facing is Fed’s policy and Powell .

-German President Frank-Walter Steinmeier and FM Scholz down talk Merkel’s comments about the Withdrawal deal, reiterating that the withdrawal agreement is not open to re-negotiations. Later in the day, and following a meeting, Chancellor Merkel challenged PM Johnson to come up with a solution to avert a no-deal Brexit “n the next 30 days, rolling the ball back to the UK’s side of the court.

- FOMC Minutes showed that most policymakers viewed the recent rate cut as part of a mid-cycle adjustment in response to the recent changes in the economic outlook. In general, officials weren’t able to agree on the rate cut, but most of them agreed that forward guidance and QE might not be enough. Somehow, the Fed has hinted more rate cuts coming, yet the dollar ticked higher.

-US oil stockpiles decreased by less than expected in the US, but crude oil prices were unable to hold on to gains, edging lower in the US session .

- Safe havens gold and yen hold ground.

- Cryptocurrencies remained under pressure BTC settled above 10,000.

Author

FXStreet Team

FXStreet

EUR/USD holds lower ground near 1.1850 ahead of EU/ US data

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1850 in European trading on Friday. A broadly cautious market environment paired with modest US Dollar demand undermines the pair ahead of the Eurozone GDP second estimate and the critical US CPI data.

GBP/USD keeps losses around 1.3600, awaits US CPI for fresh impetus

GBP/USD holds moderate losses at around 1.3600 in the European session on Friday, though it lacks bearish conviction. The US Dollar remains supported amid softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold trims intraday gains to $5,000 as US inflation data loom

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains heading into the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.