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.

GBP/USD revisits 1.3530; Dollar pushes harder

GBP/USD adds to the weekly correction and recedes toward the 1.3530 zone on Friday. Indeed, Cable faces increasing selling pressure on the back of extra gains in the Greenback, particularly fuelled by Chair Warsh’s speech at the Jackson Hole Symposium and the US NFP Annual Revision (-79K).

EUR/USD breaches below 1.1600, multi-day lows

EUR/USD now accelerates its decline and retreats to seven-day troughs in the sub-1.1600 region at the end of the week. The pair’s pullback comes on the back of the strong rebound in the US Dollar after Chair Warsh delivered a hawkish message in Jackson Hole, while the US NFP Annual Revision came in at -79K.

Gold challenges its 200-day SMA near $4,530

Gold’s decline gathers fresh steam, hitting weekly lows while disputing its critical 200-day SMA near $4,530 per troy ounce. The yellow metal’s increasing weakness comes in response to the generalised upbeat tone in the US Dollar and the widespread rebound in US Treasury yields, as investors continue to reprice a Fed rate hike in September.

Crypto Today: Bitcoin, Ethereum, XRP rally loses steam despite steady ETF inflows

Bitcoin is back below $80,000 at the time of writing on Friday, after a second attempt at breaking resistance between $81,000 and $82,000. Meanwhile, Ethereum and Ripple mirror Bitcoin’s cooling trend, with ETH sliding to $2,500 and XRP falling toward $1.40 support.

Week ahead – RBNZ and BoC decide on rates ahead of all-important US NFP

Dollar rebounds ahead of ISM PMI and NFP data. RBNZ is expected to raise rates; focus to fall on forward guidance. BoC is set to remain on hold; will it raise rates in 2027?

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.