|

Forex Today: Investors’ attention shifts to US PCE data and German flash CPI

The US Dollar (USD) extended further its weekly correction as jitters surrounding the Fed’s independence remained unabated, while tariff uncertainty and the increasing likelihood of a rate cut by the Federal Reserve in September also contributed to the sour sentiment around the Greenback.

Here's what to watch on Friday, August 29:

The US Dollar Index (DXY) retreated to three-day lows, breaking below the 98.00 key support and its 55-day SMA. The release of the PCE readings will be the salient event, seconded by the final gauge of the U-Mich Consumer Sentiment and the advanced Goods Trade Balance.

EUR/USD advanced to multi-day highs, although a retest of the 1.1700 barrier remained elusive. Germany will be in the spotlight with the release of the preliminary Inflation Rate, Retail Sales, and the labour market report. In addition, the ECB will publish its Consumer Inflation Expectations, all ahead of the speech by the ECB’s De Guindos.

GBP/USD managed to advance modestly and clinch its third consecutive day of gains, although a convincing break above 1.3500 the figure remained to be seen. The Nationwide Housing Prices will be next on tap across the Channel.

USD/JPY deflated to three-day lows, breaching below the 147.00 support amid further weakness in the Greenback. A busy calendar in Japan will see the release of the Unemployment Rate, Tokyo Inflation Rate, Industrial Production, Retail Sales, Consumer Confidence, Housing Starts, and Construction Orders.

AUD/USD extended its recovery and reclaimed the 0.6500 hurdle and above on Wednesday. The Housing Credit figures and Private Sector Credit readings will be in the limelight in Oz.

A small knee-jerk saw prices of the american WTI recede to the $63.50 zone per barrel as traders factored in the end of the US driving season as well as the resumption of Russian oil supply to Hungary and Slovakia.

Gold prices rose to five-week highs north of the $3,400 mark per troy ounce, helped by a weaker US Dollar, mixed US yields and prospects for rate cuts by the Fed next month. Silver prices followed suit, climbing to levels last seen in late July, just over the $39.00 mark per ounce.

Author

Pablo Piovano

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

More from Pablo Piovano
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD moves sideways below 1.1800 on Christmas Eve

EUR/USD struggles to find direction and trades in a narrow channel below 1.1800 after posting gains for two consecutive days. Bond and stock markets in the US will open at the usual time and close early on Christmas Eve, allowing the trading action to remain subdued. 

GBP/USD keeps range around 1.3500 amid quiet markets

GBP/USD keeps its range trade intact at around 1.3500 on Wednesday. The Pound Sterling holds the upper hand over the US Dollar amid pre-Christmas light trading as traders move to the sidelines heading into the holiday season. 

Gold retreats from record highs, trades below $4,500

Gold retreats after setting a new record-high above $4,520 earlier in the day and trades in a tight range below $4,500 as trading volumes thin out ahead of the Christmas break. The US Dollar selling bias remains unabated on the back of dovish Fed expectations, which continues to act as a tailwind for the bullion amid persistent geopolitical risks.

Bitcoin slips below $87,000 as ETF outflows intensify, whale participation declines

Bitcoin price continues to trade around $86,770 on Wednesday, after failing to break above the $90,000 resistance. US-listed spot ETFs record an outflow of $188.64 million on Tuesday, marking the fourth consecutive day of withdrawals.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Avalanche struggles near $12 as Grayscale files updated form for ETF

Avalanche trades close to $12 by press time on Wednesday, extending the nearly 2% drop from the previous day. Grayscale filed an updated form to convert its Avalanche-focused Trust into an ETF with the US Securities and Exchange Commission.