Forex Today: Markets will focus on US tariffs and the Canadian jobs report

Pablo Piovano FXStreet

The US Dollar (USD) traded with decent gains, reversing part of Wednesday’s retracement, as market participants continued to closely follow any developments from the trade front as well as Trump’s plans to replace Chair Powell.

Here's what to watch on Friday, August 8:

The US Dollar Index (DXY) clocked acceptable gains and regained the 98.40-98.50 band, setting aside part of the prevailing weekly downtrend amid mixed US yields across the curve. Next on tap on the US docket will be the release of the Inflation Rate for the month of July on August 12.

EUR/USD receded modestly soon after hitting new multi-day tops just pips away from the 1.1700 barrier. Next of note in the euro area will be the publication of the ZEW’s Economic Sentiment print for both Germany and the Euroland.

GBP/USD climbed further and surpassed the 1.3400 hurdle to reach eight-day highs. The always relevant UK labour market report is due on August 12.

USD/JPY added to Wednesday’s decline, revisiting two-day lows near 146.70 just to bounce past the 14700 mark afterwards. A busy japanese docket will feature Household Spending figures, the BoJ Summary of Opinions, Bank Lending, the Current Account results, and the Eco Watchers Survey.

AUD/USD extended its recovery north of the 0.6500 level, rising for the third day in a row. The next key event in Oz will be the RBA’s interest rate decision on August 12, seconded by the NBA Business Confidence gauge.

USD/CAD reversed four daily declines in a row, managing to revisit the 1.3750 region. The Canadian labour market report will be in the spotlight.

Crude oil prices hovered around the area above the $64.00 mark per barrel of WTI as traders remained watchful of a potential Trump-Putin meeting in the coming days.

Gold clocked decent gains and advanced to two-week peaks just below the key $3,400 mark per troy ounce. For the fifth day in a row, Silver prices rose, hitting two-week highs close to the $38.50 region 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.

GBP/USD extends the drop to 1.3360

GBP/USD builds on Monday’s decline and briefly clinches five-day lows near 1.3360 on Tuesday. Cable’s extra pullback follows the better tone in the Greenback as uncertainty in the Middle East prompts investors to adopt a cautious stance. Meanwhile, an apathetic UK labour market report also collaborates with the selling pressure on the British Pound.

EUR/USD looks inconclusive near 1.1420

EUR/USD trades in a tight range in the low 1.1400s on Tuesday, struggling to gain momentum amid an equally absence of clear direction in the US Dollar (USD). Uncertainty surrounding the US-Iran conflict is capping the pair’s upside, while traders avoid taking significant positions ahead of Thursday’s ECB gathering.

Gold shows signs of life; focus is back to $4,100

Gold gains ground on Tuesday, reversing Monday’s pessimism and advancing toward the $4,100 mark per troy ounce. Nevertheless, uncertainty surrounding the Middle East conflict and rising expectations for a hawkish Fed policy outlook are expected to limit the precious metal’s bullish momentum in the near term.

XRP extends recovery as on-chain activity grows

Ripple (XRP) ticks up and trades around $1.13 at the time of writing on Tuesday. This rebound aligns with a broader recovery in the cryptocurrency market, attributed to reports that mediators between the United States (US) and Iran are seeking a 10-day cessation of strikes to find a way back to the signed Memorandum of Understanding (MoU).

The Iranian war has again risen

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