Forex Today: Sentiment leads the way

Valeria Bednarik FXStreet

What you need to know on Wednesday, August 4:

The greenback ended the day mixed, although major pairs held within familiar levels. A scarce macroeconomic calendar and caution ahead of first-tier events later in the week exacerbated rage trading.

Wall Street opened in the red but got to post modest gains, while government bond yields held around Monday’s closing levels. The market’s mood turned positive after a sour start to the day.

EUR/USD was unable to advance beyond 1.1900, despite a better market mood, ending the day at around 1.1860. The GBP/USD pair recovered some ground and settled at around 1.1910.

The USD/CAD pair edged higher, as oil prices remained depressed. On the other hand, AUD/USD hovers around 0.7400, after the RBA surprised with a not-so-dovish monetary policy stance. The Japanese yen appreciated against the greenback as bond yields remained subdued, briefly trading below the 109.00 figure.

Gold was incapable of attracting speculative interest, now consolidating around the 1,810 level.

Investors await US employment-related data and BOE’s Super Thursday.

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC and altcoins correct before another run-up

Like this article? Help us with some feedback by answering this survey:

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

GBP/USD advaces beyond 1.3450 after BoE decision, US Q2 GDP

GBP/USD gains positive momentum on Thursday, surpassing 1.3450 and trading at fresh multi-week highs. The Bank of England decided to maintain the benchmark rate unchanged at 3.75%. The MPC voted 6-3 to keep rates on hold, with the 3 dissenters favoring a rate hike. US Q2 GDP missing expectations helped the pair advance, while renewed US Dollar weakness across the FX board pushed the pair further up ahead of the monthly close.

EUR/USD confortable around 1.1530, highest in six weeks

The EUR/USD pair trades around 1.1530 in the American session on Thursday, reaching fresh six-week highs. The US Dollar is in sell-off mode, with multiple factors weighing on the American currency. Not only did the Federal Reserve vote divided to keep rates on hold on Wednesday, creating doubts about a September hike, but US Q2 GDP missed expectations. A suspected JPY intervention adds pressure on the Greenback.

Gold recovers the $4,100 level as US Dollar weakens further

Gold trades just above $4,100 amid a US Dollar sell-off. The Greenback enjoyed some near-term demand following Wednesday's post-FOMC downfall, but was unable to retain its gains. The preliminary estimate of the US Q2 GDP showed the economy grew at an annual rate of 1.5%, missing the market's expectations of 2.1%.

Bank of Japan set to keep interest rates unchanged after suspected Yen intervention

Investors are turning their attention to the Bank of Japan’s monetary policy announcement on Friday, after the Japanese Yen staged a dramatic rebound during Thursday's American session. The move came amid growing speculation that Japanese authorities intervened in the foreign exchange market after USD/JPY tumbled from above 163.00 to below 158.00 within minutes.

Aave to sunset Sonic, Aptos, zkSync, Scroll reserves, affecting $98 million in supply

Aave is planning to sunset 75 low-activity reserves across its decentralized finance protocol as part of a broader effort to reduce operational, technical and economic risks across its network of deployments.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.