Here is what you need to know on Friday, August 12:

The risk rally that was fueled by the soft US inflation data mid-week lost its steam and the market action turned choppy ahead of the weekend. The US Dollar Index moves sideways in a narrow channel above 105.00, the 10-year US T-bond yield holds above 2.8% and the US stock index futures post small daily gains following Wall Street's mixed performance on Thursday. June Industrial Production data will be featured in the European economic docket. Later in the day, investors will pay close attention to the University of Michigan's preliminary Consumer Sentiment Survey for August. The long-run inflation expectations component of the survey could trigger a market reaction during the American trading hours.

Although the data from the US showed on Thursday that producer inflation rose at a softer pace than expected in July, the greenback managed to stay resilient against its rivals amid a cautious market mood. Meanwhile, San Francisco Fed President Mary Daly told Bloomberg that she has an open mind on the possibility of a 75 basis points rate hike in September.

EUR/USD registered small daily gains on Thursday and seems to have gone into a consolidation slightly above 1.0300 on Friday.

GBP/USD continues to fluctuate in a narrow channel near 1.2200 in the early European morning as investors assess the latest data releases. The UK's Office for National Statistics reported on Friday that the Gross Domestic Product contracted by 0.1% on a quarterly basis in the second quarter. Moreover, Industrial Production and Manufacturing Production fell by 0.9% and 1.6%, respectively, on a monthly basis in July. 

Gold closed flat on Thursday and stays on the backfoot near $1,790 early Friday with US Treasury bond yields holding steady during the European session. 

USD/JPY staged a rebound after having dropped below 132.00 on Thursday but struggled to gather momentum. The pair clings to modest daily gains as it tries to stretch higher toward 133.50 on Friday.

Rising crude oil prices provide a boost to the commodity-sensitive loonie and USD/CAD continues to push lower toward 1.2700 on Friday. The barrel of West Texas Intermediate is up more than 6% this week.

Bitcoin touched its highest level since mid-June at around $25,000 but erased all of its daily gains to close at $24,000 on Thursday. BTC/USD stays calm near that level during the European morning. Ethereum lost its bullish momentum before reaching $2,000 and returned below $1,900. Nevertheless, ETH/USD is up more than 10% this week and remains on track to post sixth straight weekly gains.

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD rebounds above 0.9800 on renewed dollar weakness

EUR/USD rebounds above 0.9800 on renewed dollar weakness

EUR/USD has gathered recovery momentum and turned positive on the day above 0.9800 in the American session on Monday. The disappointing ISM Manufacturing PMI from the US weighed heavily on the greenback, providing a boost to the pair.

EUR/USD News

GBP/USD clings to impressive daily gains near 1.1300

GBP/USD clings to impressive daily gains near 1.1300

GBP/USD has extended its daily rally and touched a fresh 10-day high above 1.1300 in the second half of the day on Monday. The UK government's U-turn on the fiscal plan and the broad-based selling pressure surrounding the greenback after PMI data fuel the pair's upside.

GBP/USD News

Gold bulls aim to challenge the $1,700 threshold

Gold bulls aim to challenge the $1,700 threshold

Gold picked up momentum after Wall Street’s opening, and runs above $1,690.00 a troy ounce, trading at its highest in three weeks. The greenback sheds ground on the back of the better performance of equities, coupled with tepid US data.

Gold News

Cardano could be set for 12% gains just this week alone

Cardano could be set for 12% gains just this week alone

ADA could set itself up this week for a perfect opportunity to go long in a bear market. Markets may experience some risk-on this week, with markets potentially set to jump, and equities and a weaker dollar offering some room for cryptocurrencies to rally in.

Read more

TSLA set to fall more as delivery data disappoints

TSLA set to fall more as delivery data disappoints

Tesla (TSLA) looks set to open sharply lower on Monday as the equity market continues to battle raging storms. Last week was a momentous one in currency markets, and those of us in equity land need to keep note of this.

Read more

Forex MAJORS

Cryptocurrencies

Signatures