Forex Today: Watch out for some dollar’s gains

FXStreet Team FXStreet

Here is what you need to know on Monday, August 10:

The dollar closed the week with a firmer tone, partially backed by an upbeat employment report, but also by US President Trump’s decisions. On Friday, the US administration imposed sanctions on Hong Kong’s chief leader, Carrie Lam, and ten other senior officials for their roles in the political turmoil in the region, also anticipating fiscal stimulus executive orders, which finally came on Saturday.

Trump signed four orders, which extend unemployment benefits by $400, suspends the collection of payroll taxes till December, stop evictions from rental housing that has federal financial backing and extend zero per cent interest on federally financed student loans. Meanwhile, the US Congress is still unable to reach an agreement on fiscal aid. The news could boost the greenback at the beginning of the week.

The US employment report released Friday was better than anticipated but indicated the US path to recovery that lies ahead is still long and bumpy.

Majors eased from fresh multi-month highs, with most currency pairs ending the week little changed. Somehow, it could be an early sign of the dollar’s selling exhaustion. Anyway, the greenback has not much of a background to run steadily after a corrective advance.

Bright metals continued strengthening to records. Gold pulled back from an all-time high of 2,075.19 to the current 2,034 price zone. The movement seems corrective, and bears have little to do unless it breaks 2,000 in which case, profit-taking would exacerbate the decline.

China will publish July inflation data on the first day of the week. The macroeconomic calendar will be mostly light until the end of the week.

Crypto bears dominate, Ripple breaches $0.2900

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD drops to two-week low, further below 0.7000 after RBA's less hawkish rate hike

AUD/USD drifts lower for the second straight day on Tuesday, hitting a fresh two-week low during the Asian session after the Reserve Bank of Australia's (RBA) widely expected 25 bps rate hike. The decision was far from unanimous, with three members preferring to hold rates at 4.60%. This tempers expectations of further tightening, which, along with modest US Dollar strength, weighs on the currency pair.

USD/JPY fails near 159.00 amid weak USD, intervention risks

USD/JPY edges lower during Tuesday’s Asian session, reversing part of the previous day's gains to 158.00 as the US Dollar remains depressed amid hopes for Iran diplomacy and ahead of US midterm elections. Meanwhile, intervention risks support the Japanese Yen, though the uncertainty over the timing of the next BoJ rate hike caps gains. This keeps the pair confined within a familiar range and warrants caution before placing directional bets.

Gold slides below $3,900 as Fed hike bets counter softer USD ahead of US elections

Gold slides below the $3,900 mark during the first half of the European session, eyeing its lowest level since October 2025, set last week amid expectations of further tightening by the US Federal Reserve. Data released on Monday showed that US manufacturing sector business activity expanded for the 10th consecutive month in October. The Institute for Supply Management's Manufacturing PMI came in higher than consensus estimates and rose to 55.5 in October from 54.5 in the previous month.

Cardano extends losses as sellers stay in control

Cardano (ADA) extends correction, trading below $0.189 on Tuesday after losing key support zone the previous day. Mixed derivatives data and cautious on-chain metrics continue to weigh on bullish sentiment, while weakening technical indicators suggest further downside risks for ADA.

BoE is set to hike rates this week: Warns against 'unwarranted' aggressive tightening

We see a hike as a done deal this week and another, while not yet our baseline scenario, is possible in February should inflation stay above 4%, commodity prices remain high and activity remain resilient. We remain of the view, however, that aggressive tightening is unwarranted, for four main reasons: There are no clear signs of second-round inflation effects, nor do we think that there will be.

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.