|

Forex Today: Rate cut expectations look at US inflation data

Further optimism in the risk-linked complex maintained the Greenback under pressure in the first half of the week, while investors got ready for the release of crucial US inflation figures on Wednesday. Still around inflation, the UK CPI will also be in the spotlight.

Here is what you need to know on Wednesday, August 14:

The USD Index (DXY) retreated for the third day in a row and once again broke below the 103.00 support amidst lower yields. The Inflation Rate will take centre stage on August 14 seconded by weekly MBA’s Mortgage Applications.

EUR/USD climbed to multi-day highs and revisited the 1.0980 zone on the back of the improved tone in the riskier assets. Another estimate of the Q2 GDP Growth rate in the euro area is due on August 14, followed by Industrial Production and the preliminary Employment Change in Q2.

GBP/USD resumed its uptrend and rose sharply, this time rapidly leaving behind the 1.2800 barrier to print multi-day tops. The salient event across the Channel will be the Inflation Rate on August 14.

USD/JPY maintained its erratic performance seen in past days, although a convincing breakout of the 148.00 barrier appears elusive for the time being. The next significant data releases in Japan will be the advanced Q2 GDP Growth Rate, the final Industrial Production and weekly Foreign Bond Investment, all expected on August 15.

Another positive day saw AUD/USD trespass the key 0.6600 barrier and reach new three-week highs. Next of note on the Australian calendar will be the Consumer Inflation Expectations and the publication of the labour market report, all due on August 15.

WTI prices could not sustain a move past the key $80.00 mark per barrel, eventually succumbing to the renewed selling pressure and returning below the $79.00 mark.

Gold prices approached the $2,480 region per ounce troy before retreating and ending the session with modest losses ahead of the US CPI data on Wednesday. Silver dropped markedly despite briefly surpassing the $28.00 mark per ounce earlier in the day.

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:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD holds steady below 1.1800

EUR/USD moves sideways in a narrow channel below 1.1800 as the market volatility remains low ahead of the New Year holiday. On Tuesday, investors will pay close attention to the minutes of the Federal Reserve's December policy meeting.

GBP/USD retreats below 1.3500 as trading conditions remain thin

GBP/USD corrects lower after posting strong gains in the previous week and trades below 1.3500 on Monday. With the action in financial markets turning subdued following the Christmas holiday, however, the pair's losses remain limited.

Gold holds above $4,300 after profit taking kicked in

Gold retreats sharply from the record-peak it set at $4,550 and trades below $4,400, losing more than 3% on the day. Growing optimism about a Ukraine-Russia peace agreement and profit-taking ahead of the New Year holiday seem to be causing XAU/USD to stay under heavy bearish pressure.

Bitcoin, Ethereum, and XRP bulls regain strength

Bitcoin, Ethereum, and Ripple record roughly 3% gains on Monday, regaining strength mid-holiday season. Despite thin liquidity in the holiday season, BTC and major altcoins are regaining strength as US President Donald Trump pushes peace talks between Russia and Ukraine. The technical outlook for Bitcoin, Ethereum, and Ripple gradually shifts bullish as selling pressure wanes.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Crypto market outlook for 2026

Year 2025 was volatile, as crypto often is.  Among positive catalysts were favourable regulatory changes in the U.S., rise of Digital Asset Treasuries (DAT), adoption of AI and tokenization of Real-World-Assets (RWA).