Forex Today: US Retails Sales and sentiment gauges take centre stage

The US Dollar (USD) showed some signs of life on Thursday, this time coming from firmer-than-expected prints from US producer prices and the weekly report on the labour market. While tensions on the trade front appear somewhat mitigated, investors remain watchful of the upcoming Trump-Putin meeting on Friday.

Here's what to watch on Friday, August 15:

The US Dollar Index (DXY) snapped two consecutive days of losses and managed to reclaim the 98.00 barrier and above, underpinned by solid US data and higher US yields across the curve. Retail Sales will be the salient event on Friday, seconded by the preliminary U-Mich Consumer Sentiment gauge, Import/Export Prices, Business Inventories, Industrial/Manufacturing Production, the NY Empire State Manufacturing Index, and TIC Flows.

EUR/USD set aside two daily advances in a row and receded below the 1.1700 barrier in response to the resurgence of the demand for the Greenback. Next on tap on the domestic calendar will be the Balance of Trade results in the eurozone, due on August 18.

GBP/USD hit five-week highs just below the 1.3600 hurdle, although the US Dollar’s rebound prompted Cable to end the day with modest losses. Next of note on the UK docket will be the crucial Inflation Rate on August 20.

USD/JPY managed to regain composure following the earlier drop to the vicinity of the 146.00 region, eventually ending the day with humble gains near 147.50. The Preliminary Q2 GDP Growth Rate and the weekly Foreign Bond Investment figures will be next in Japan on August 15.

AUD/USD could not sustain the early move to two-week highs near 0.6570, succumbing to the selling pressure and ending the day around the 0.6500 region. The Consumer Inflation Expectations are next on the Australian calendar.

Crude oil saw its multi-day decline somewhat interrupted on Thursday after WTI prices rose to the proximity of the $64.00 mark per barrel as traders maintained prudence ahead of the Trump-Putin meeting amid threats of extra tariffs.

Gold faded two straight days of gains and challenged weekly lows near $3,330 per troy ounce on the back of the strong rebound in the Greenback and the marked recovery in US yields. Silver prices reversed part of the recent advance and dropped below the $38.00 mark per ounce.