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.
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EUR/USD treads water just above 1.0400 post-US data
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GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
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Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
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