Forex Today: US Dollar ends mixed, retains its leadership

Valeria Bednarik FXStreet

What you need to know on Tuesday, August 22:

The US Dollar lost some ground on Monday, although a scarce macroeconomic calendar kept major pairs within familiar levels.

The market sentiment remained sour, while government bond yields advanced, reflecting the ruling cautious stance. The US Treasury yield hit its highest since 2007, as investors are concerned global central bankers will extend the monetary tightening programs to tame inflation.

China remained in the eye of the storm, with news indicating that government land sales revenue declined for the 19th consecutive month in July. The People’s Bank of China (PBoC) cut the one-year Loan Primer Rate by 10 basis points (bps) to 3.45% on Monday, as expected, following similar measures last week and falling short from expectations of bolder measures. The Yuan fell with the news, as speculative interest was waiting for a more aggressive measure to support the local currency. Later in the day, UBS cut China’s 2023 real GDP growth forecast to 4.8% from 5.2%.

German Bundesbank monthly report showed inflation could persist above the central banks targets for longer while growth is foreseen seen largely flat in Q3.

EUR/USD struggles around 1.0900, lacking momentum to run past the level. GBP/USD looks better poised to extend gains, trading at around 1.2740. The Australian Dollar gained vs its American rival, will Gold prices also up, although the latter held below $1,900. The USD/CAD edged higher as a decline in oil prices weighed down the Loonie.

USD/JPY trades above 146.00 and near its recent multi-month high of 146.53 amid mounting speculation the Bank of Japan will need to readjust its ultra-loose monetary policy soon.

The macroeconomic calendar has little to offer this week, with the focus on the Jackson Hole Symposium starting next Thursday. Federal Reserve (Fed) Chair Jerome Powell and European Central Bank (ECB) President Christine Lagarde will speak on Friday, with market players hoping for clues on future decisions.

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.

EUR/USD eases to four-week lows near 1.1650

EUR/USD now loses further momentum and recedes to multi-week lows near 1.1650 on Thursday. The pair’s extra retracement comes on the back of the persistent bid tone in the US Dollar as investors continue to gear up for the release of the December NFP figures on Friday.

GBP/USD: Further weakness could challenge 1.3400

GBP/USD remains under unabated selling pressure on Thursday, slipping to fresh three-day lows around 1.3415 in response to further improvement in the sentiment surrounding the Greenback ahead of Friday’s key NFP data.

Gold bounces back to its comfort zone

Gold now manages to regain some balance, fading its earlier pullback to the proximity of the $4,400 region per troy ounce and reshifting its attention to the $4,450 zone on Thursday. The yellow metal’s move lower comes in response to a better tone in the Greenback and the generalised recovery in US Treasury yields.

Crypto Today: Bitcoin, Ethereum, XRP extend decline as ETF outflows pose headwinds

Bitcoin struggles with selling pressure as institutional investor sentiment deteriorates. Ethereum hangs onto the 50-day EMA lifeline amid growing overhead risks and the resumption of ETF outflows.

2026 economic outlook: Clear skies but don’t unfasten your seatbelts yet

Most years fade into the background as soon as a new one starts. Not 2025: a year of epochal shifts, in which the macroeconomy was the dog that did not bark. What to expect in 2026? The shocks of 2025 will not be undone, but neither will they be repeated.

XRP slides as institutional and retail demand falters

Ripple is trading down for the third consecutive day on Thursday amid escalating volatility in the cyrptocurrency market. After peaking at $2.41 on Tuesday, its highest print since November 14 amid the early-year rally, XRP has quickly ran into aggressive profit-taking.