Forex Today: It’s PMI-day!

Pablo Piovano FXStreet

The US Dollar (USD) ended another indecisive session trading near the top of its weekly range, as investors weighed the FOMC Minutes against fresh attacks from President Trump on the Federal Reserve, this time directed at Governor Lisa Cook.

Here's what to watch on Thursday, August 21:

The US Dollar Index (DXY) could not sustain an earlier move to multi-day highs near 98.50, eventually ending the day with marginal losses near 98.20. The usual weekly Initial Jobless Claims are due, seconded by the Philly Fed Manufacturing Index, Existing Home Sales, the CB Leading Index, and the preliminary S&P Global Manufacturing and Services PMIs. In addition, the Fed’s Bostic is due to speak.

EUR/USD clocked marginal gains after two daily retracements in a row, although still far from the 1.1700 zone. The advanced HCOB Manufacturing and Services PMIs will be released in Germany and the euro area, followed by the flash Consumer Confidence gauge by the European Commission and Construction Output prints in the euro zone.

GBP/USD dropped for the third day in a row and clinched new multi-day lows near 1.3450. The flash S&P Global Manufacturing and Services PMIs are expected, ahead of the CBI Industrial Trends Orders, and Public Sector Net Borrowing figures.

USD/JPY maintained its broader consolidative theme in place, this time building on Tuesday’s losses and flirting with three-day troughs near the 147.00 support. The preliminary S&P Global Manufacturing and Services PMIs are due, alongside weekly Foreign Bond Investment readings.

AUD/USD deepened its weekly leg lower, coming closer to the monthly low near the 0.6420 zone. The Melbourne Institute will release its Inflation Expectations, prior to the advanced S&P Global Manufacturing and Services PMIs.

Crude oil prices managed to regain some traction and set aside three consecutive days of losses, approaching the $63.00 mark per barrel of WTI as traders continued to look at the geopolitical landscape and assessed the larger-than-expected US drop of crude oil supplies.

Gold prices rose to two-day tops and approached the key $3,350 mark per troy ounce amid investors’ expectations ahead of the Jackson Hole Symposium. Silver prices followed suit, bouncing off multi-day troughs around the $37.00 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.

AUD/USD sticks to positive bias above 0.7100; lacks bullish conviction

AUD/USD trades with a positive bias for the second straight day, holding above 0.7100 in the Asian session on Friday as softer US bond yields keep US Dollar bulls on the back foot. Furthermore, hawkish RBA Governor Bullock's comments boost rate hike bets and support the Aussie. However, the Fed's hawkish outlook, along with geopolitical uncertainties, limits USD losses and caps the pair.

USD/JPY approaches 158.00 as Japanese Yen resumes decline

USD/JPY is resuming its upside in the European session on Friday, refreshing two-week highs and nearing 158.00. The Japanese Yen extends losses, despite the Bank of Japan's (BoJ) expected rate hike to 1.25% and hawkish Governor Ueda's comments, as two surprise dissents against the rate hike weigh on it.

Gold keeps the bid tone in place; still below $4,400

Gold adds to the optimism seen in the second half of the week, trading with decent gains just below the $4,400 mark per troy ounce on Friday. The precious metal’s advance finds traction in declining crude oil prices and fresh selling pressure on the US Dollar.

Why altcoin season isn't coming back — and what stole its capital

If, after two years of being frozen in ice, Katara and Sokka woke you up to the crypto market, it would seem like 100 years have passed. With Bitcoin soaring to record highs just over a year ago, everyone expected a routine altcoin season, where investors take profits from the top crypto to chase higher returns in altcoins.

BoJ Recap: Not as hawkish as expected

The BoJ raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks. Governor Kazuo Ueda said the policy phase had changed.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.