|

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:

Editor's Picks

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary. 

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.