The persistent selling bias surrounding the Greenback has continued, resulting in subdued price action for yet another session. This downward trend has been exacerbated by the latest July CPI data, which confirms the ongoing disinflationary pressures in the US economy. The USD Index (DXY) experienced a drop to multi-day lows near 102.30 as a direct result of these economic indicators. Looking ahead, a busy US economic calendar for August 15 includes key releases such as Retail Sales, the Philly Fed Manufacturing Index, Initial Jobless Claims, Industrial Production, the NAHB Housing Market Index, and Net Long-term TIC Flows. Additionally, speeches from Fed officials Musalem and Harker are scheduled for the same day.
European Foreign Exchange Markets
In contrast to the weakening Greenback, the EUR/USD pair has been gaining strength, reaching new highs around 1.1050 in 2024. This positive momentum in the Euro can be attributed to the continued weakness in the US Dollar. On the other hand, GBP/USD saw some downward pressure as market participants anticipate potential easing measures by the Bank of England following the release of UK CPI data. Key economic indicators from the UK, including GDP Growth Rate, Balance of Trade, Construction Output, Industrial Production, Manufacturing Production, and the NIESR Monthly GDP Tracker, are all set to be released on August 15.
Asian Currency Markets and Commodities
USD/JPY has been fluctuating within a narrow range near 147.00, reflecting overall market consolidation. The upcoming release of GDP Growth Rate data will be closely watched on August 15, alongside reports on Foreign Bond Investment and final Industrial Production figures. Meanwhile, AUD/USD experienced a minor retreat after hitting highs near 0.6650, with upcoming economic indicators such as Consumer Inflation Expectations and the jobs report scheduled for release. In the commodities market, WTI prices dipped below $78.00 per barrel for the second consecutive day due to reduced geopolitical tensions and concerns over demand. Similarly, Gold prices declined to two-day lows around $2,440 per ounce, while Silver prices fell to four-day lows near $27.20 per ounce amid broader weakness in the commodity sector and fears related to the Chinese economy.
Ongoing economic data releases and geopolitical events continue to influence global financial markets, leading to fluctuations in currency pairs and commodity prices. Investors and traders must remain vigilant and adapt their strategies accordingly to navigate the ever-changing market conditions.