Forex Today: Dollar to remain on the losing side
|What you need to know on Monday, August 2:
The American dollar got to advance on Friday, although ended the week with losses against its major rivals. The currency benefited from softer-than-anticipated US inflation figures, as the core PCE Price Index, the US Federal Reserve favorite inflation figure, printed at 3.5% YoY in June, ticking higher from the previous 3.4% but below the 3.7% expected. Month-end flows and profit-taking also helped the greenback. Nevertheless, its gains were moderated and uneven.
Wall Street edged lower while US government bond yields retreated amid cooling speculation for heating inflation. The EUR/USD pair flirted with 1.1900, as local GDP surpasses expectations in Q2. The GBP/USD pair heads into the weekly opening trading at around 1.3900 as the coronavirus situation in the UK keeps improving.
The Australian dollar was the weakest, with AUD/USD ending the week at 0.7330, as the aussie remains away from the investors’ radar, given the ongoing pandemic situation in the country. The CAD also fell against the greenback, but not after reaching fresh highs against its American rival.
Gold retreated sharply, ending the week at $1,814 a troy ounce. Crude oil prices held on to weekly gains, retreating just modestly ahead of the close. WTI settled at $73.70 a barrel.
The focus this week will be on the RBA and the BOE, as both central banks will announce its monetary policy decisions. On Friday, the US will publish the July Nonfarm Payroll report.
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