The Greenback managed to shrug off part of the post-Fed retracement and advanced markedly in a context dominated by the risk-off sentiment. Around central banks, the BoE delivered a cautious 25 bps rate cut, although it warned against the view of successive reductions.
Here is what you need to know on Friday, August 2:
The USD Index (DXY) was the sole winner amidst the generalized risk aversion scenario, which saw yields head further south and a sharp sell-off in equities. On August 2, Nonfarm Payrolls take centre stage seconded by the Unemployment Rate and Factory Orders.
EUR/USD resumed its decline and returned to the sub-1.0800 region on the back of the generalized risk aversion sentiment. There are no data releases scheduled in the euro zone on August 2.
GBP/USD suffered the strong pick-up in the Greenback and retreated to four-week lows despite the cautious rate cut by the BoE. On August 2, the BoE’s Chief Economist H. Pill is due to speak.
A volatile session left USD/JPY lingering around the 150.00 neighbourhood amidst the risk-off trade and declining US and Japanese yields. The Japanese calendar is empty on August 2.
There seems to be no respite for the rout in AUD/USD, which sharply reversed Wednesday’s bullish attempt and refocused on the 0.6500 region once again. Home Loans and Investment Lending for Homes are expected in Oz on August 2 along with Producer Prices in Q2.
WTI prices partially faded Wednesday’s strong uptick on the back of US recession concerns and the stronger US Dollar. The commodity revisited the $77.00 mark per barrel following tops near the $79.00 region.
Gold prices could not sustain the initial bullish attempt to the $2,460 area per ounce troy and eventually printed modest losses near $2,440. Silver sold off to the $28.00 area per ounce after two daily advances in a row.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
Gold hits another record high near $3,375 on fresh safe-haven demand
Gold price drifts higher to a fresh record high near $3,375 in the Asian session on Monday after facing some profit-taking due to the long weekend. Uncertainty about US President Donald Trump's tariff policies and persistent geopolitical tensions continue to underpin the precious metal.
AUD/USD sits at two-month top near 0.6400 after PBOC leaves rates unchanged
AUD/USD hangs close to fresh two-month high near 0.6400 this Monday after the PBOC decided to leave the one and five-year Loan Prime Rates unchanged. The RBA's hawkish outlook supports the pair amid a bearish USD. However, the risk-off flows and concerns about the rapidly escalating trade war keep the upside capped.
USD/JPY slides further to 141.00, fresh low since September 2024
USD/JPY drops to a fresh seven-month low, testing 141.00 at the start of a new week as trade-related uncertainties and geopolitical risks continue to drive flows towards the JPY. The divergent BoJ-Fed expectations further exert pressure on the pair amid a bearish USD and thin liquidity during the Easter Monday holiday.
Week ahead: Eyes on flash PMIs as tariff uncertainty persists
Tariff headlines remain at the top of investors’ agendas. But flash S&P Global PMIs could attract special attention. Auctions to reveal information about demand for Treasuries. Tokyo CPI data and Canada’s retail sales also on tap.
Future-proofing portfolios: A playbook for tariff and recession risks
It does seem like we will be talking tariffs for a while. And if tariffs stay — in some shape or form — even after negotiations, we’ll likely be talking about recession too. Higher input costs, persistent inflation, and tighter monetary policy are already weighing on global growth.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.