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

Pablo Piovano FXStreet

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

FXStreet

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

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold tumbles as blockbuster US NFP lift US Dollar, Treasury yields

Gold (XAU/USD) falls sharply on Friday, snapping a two-day recovery after the US Nonfarm Payrolls (NFP) report surprised strongly to the upside. The metal briefly climbed above $4,500 on Thursday, gaining nearly 2%, but has since erased a large part of that advance.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.

Why hawkish Bank of Japan expectations aren't enough to sustain the Japanese Yen rally

The Japanese Yen (JPY) experienced a sudden burst higher after falling back below the 160.00 psychological mark against the US Dollar (USD) earlier this week amid a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.