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Forex Today: UK jobs report and US Producer Prices… for starters

Global markets navigated within a consolidative theme as investors warmed up ahead of key US data releases, which will surely have an impact on bets on an interest rate cut by the Fed and give further insight on the health of the US economy.

Here is what you need to know on Tuesday, August 13:

The USD Index (DXY) alternated gains with losses around the 103.20 zone amidst the generalized flattish mood in global markets. On August 13, Producer Prices will be at the centre of the debate as well as the speech by the Fed’s R. Bostic.

EUR/USD managed to reverse part of the recent multi-day bearishness, advancing modestly to the vicinity of 1.0940. The Economic Sentiment tracked by the ZEW institute in both Germany and the euro area take centre stage on August 13 on the domestic calendar.

GBP/USD expanded its recovery and came just pips away of the key 1.2800 the figure. The UK labour market report will be the salient event across the Channel on August 13.

Further depreciation of the Japanese yen prompted USD/JPY to gather fresh impulse and surpass the 148.00 hurdle, although the pair faded a big chunk of that move towards the end of the day. Producer Prices are due in Japan on August 13.

The resurgence of the bullish trend saw AUD/USD briefly test waters above the 0.6600 barrier, a region where the key 200-day SMA also coincides. On August 13, Westpac’s Consumer Confidence Index is due, seconded by the Wage Price Index.

Prices of WTI rose for the fourth session in a row and surpassed the $79.00 mark per barrel, helped by rising geopolitical concerns and hopes of the start of the easing cycle by the Fed in September.

Prices of Gold climbed to multi-day highs near $2,470 per ounce troy following the vacillating price action in the Greenback and lower US yields, while geopolitical effervescence and hopes of rate cuts by the Fed adding to the sentiment. In the same line, Silver advanced to five-day highs and flirted with the key $28.00 mark per ounce.

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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.

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