Here is what you need to know on Friday, August 9:
Financial markets hold steady on the last trading day of a week that featured extremely volatile action in a variety of asset classes. Following Thursday's risk rally, US stock index futures trade flat in the European morning on Friday. The July jobs report from Canada will be the only data highlighted in the economic calendar in the second half of the day.
US Dollar PRICE This week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.14% | 0.29% | 0.31% | -1.02% | -1.35% | -1.22% | 0.97% | |
| EUR | 0.14% | 0.35% | 0.29% | -1.01% | -1.20% | -1.19% | 1.00% | |
| GBP | -0.29% | -0.35% | 0.00% | -1.33% | -1.54% | -1.53% | 0.63% | |
| JPY | -0.31% | -0.29% | 0.00% | -1.28% | -1.69% | -1.49% | 0.68% | |
| CAD | 1.02% | 1.01% | 1.33% | 1.28% | -0.30% | -0.19% | 1.81% | |
| AUD | 1.35% | 1.20% | 1.54% | 1.69% | 0.30% | 0.02% | 2.21% | |
| NZD | 1.22% | 1.19% | 1.53% | 1.49% | 0.19% | -0.02% | 2.19% | |
| CHF | -0.97% | -1.00% | -0.63% | -0.68% | -1.81% | -2.21% | -2.19% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Wall Street's main indexes registered impressive gains on Thursday as fears over a continuation of the unwinding of the Japanese Yen (JPY) eased. Meanwhile, de-escalation of geopolitical tensions further helped the risk mood improve. According to the CNN, Iran could refrain from attacking Israel in exchange for a ceasefire in Gaza.
After posting modest gains for three consecutive days, the US Dollar Index (DXY) seems to have stabilized above 103.00 in the early European session. In the meantime, the benchmark 10-year US Treasury bond yield fluctuates in a narrow channel slightly below 4% after rising over 5% in the previous three days.
During the Asian trading hours, the data from China showed that the Consumer Price Index (CPI) rose 0.5% on a monthly basis in July. This reading followed the 0.2% decrease recorded in June and came in above the market expectation for an increase of 0.3%. AUD/USD gained more than 1% on Thursday and seems to have gone into a consolidation phase at around 0.6600 on Friday.
EUR/USD failed to make a decisive move in either direction for the second straight day on Thursday. Early Friday, the pair continues to move sideways above 1.0900.
GBP/USD finally benefited from improving risk mood and gathered recovery momentum on Thursday, rising over 0.4% on a daily basis. The pair continues to edge higher in the European session and was last seen trading a few pips above 1.2770.
USD/JPY built on Wednesday's gains and closed in the green on Thursday. The pair stays relatively quiet in the European morning and trades in a tight channel above 147.00.
Gold staged a decisive rebound and continued to push higher after breaking above $2,400 on Thursday, snapping a six-day losing streak. XAU/USD stays relatively quiet and trades at around $2,420.
Risk sentiment FAQs
In the world of financial jargon the two widely used terms “risk-on” and “risk off'' refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest.
Typically, during periods of “risk-on”, stock markets will rise, most commodities – except Gold – will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a “risk-off” market, Bonds go up – especially major government Bonds – Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit.
The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are “risk-on”. This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity.
The major currencies that tend to rise during periods of “risk-off” are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world’s reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them – even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to modest daily gains above 1.1550
EUR/USD holds its ground and trades modestly higher on the day above 1.1550 on Monday. The US Dollar stays resilient against its peers as markets remain cautious on escalating tensions in the Middle East, capping the pair's upside.
GBP/USD stays below 1.3600 as markets remain focused on geopolitics
GBP/USD stays slightly below 1.3600 in the second half of the day on Monday, while investors keep a close eye on the ongoing military conflict between Iran and Israel. Later in the week, the Fed and the BoE will announce monetary policy decisions.
Gold price sticks to intraday losses above $3,400 amid receding haven demand
Gold price holds its steady retreat from a nearly two-month peak while defending the $3,400 mark in the European session on Monday. A generally positive tone around the equity markets is seen as a key factor undermining the safe-haven bullion, which now seems to have snapped a three-day winning streak.
Seven fundamentals for the week: Iran-Israel war, Fed to fire up tariff-troubled markets Premium
When will the Fed cut interest rates? That question competes with the Israel-Iran war and the fate of the tariffs America slaps on its peers. US retail sales and interest rate decisions in Japan and the UK keep things lively as well.
Chinese data suggests economy on track to hit 2025 growth target
China's May data was mixed with strong retail sales, but soft readings on fixed-asset investment and property price. Overall, though, data suggests that China remains on track to achieve its growth target in the first half of 2025.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.