Further decline saw the Greenback recede to levels last traded in late December 2023 in the sub-101.00 zone, as bets for a rate cut in September were boosted by the FOMC Minutes of the July gathering.
Here is what you need to know on Thursday, August 22:
The USD Index (DXY) retreated to the 100.90 zone against the backdrop of extra losses in US yields across the curve and firmer expectations of a rate cut in September. The Jackson Hole Symposium kicks in on August 22, while on the US docket are expected the usual weekly Initial Jobless Claims, the Chicago Fed National Activity Index, Existing Home Sales, and the advanced S&P Global Manufacturing and Services PMIs for the month of August.
EUR/USD accelerated its bullish impulse and hit new YTD peaks past 1.1170, always in response to the pronounced sell-off in the US Dollar. On August 22, the ECB will publish its Meeting Accounts, along with the release of preliminary HCOB Manufacturing and Services PMIs for the current month in both Germany and the broader euro area and the flash Consumer Confidence gauge in the bloc tracked by the European Commission.
Following its risky peers, GBP/USD reached fresh 2024 tops north of the 1.3100 barrier amidst the exacerbated selling pressure in the Greenback. The advanced S&P Global Manufacturing and Services PMIs for the month of August will be unveiled on August 22, seconded by the CBI Industrial Trends Orders.
USD/JPY added to the weekly leg lower and broke below the 145.00 support with certain conviction following lower yields and the sharp retracement in the Dollar. The preliminary Jibun Bank Manufacturing and Services PMIs are due on August 22, seconded by weekly Foreign Bond Investment figures.
Further gains saw AUD/USD clinch multi-day peaks near 0.6760 on the back of the continuation of the downward bias in the US Dollar. The flash Judo Bank Manufacturing and Services PMIs are expected on August 22.
Recession fears and omnipresent demand concerns coming from the sluggish Chinese economy weighed further on traders and dragged WTI prices to nearly seven-month lows around $71.50 per barrel.
Gold prices rose marginally, although enough to keep the trade above the key $2,500 mark per ounce troy. Silver left behind Tuesday’s irresolute day and advanced past the $29.00 mark per ounce.
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
EUR/USD drops to two-year lows below 1.0400 after weak PMI data
EUR/USD stays under bearish pressure and trades at its weakest level in nearly two years below 1.0400. The data from Germany and the Eurozone showed that the business activity in the private sector contracted in early November, weighing on the Euro.
GBP/USD falls to six-month lows below 1.2550, eyes on US PMI
GBP/USD extends its losses for the third successive session and trades at a fresh fix-month low below 1.2550 on Friday. Disappointing PMI data from the UK weigh on Pound Sterling as market focus shift to US PMI data releases.
Gold price refreshes two-week high, looks to build on momentum beyond $2,700 mark
Gold price hits a fresh two-week top during the first half of the European session on Friday, with bulls now looking to build on the momentum further beyond the $2,700 mark. This marks the fifth successive day of a positive move and is fueled by the global flight to safety amid persistent geopolitical tensions stemming from the intensifying Russia-Ukraine war.
S&P Global PMIs set to signal US economy continued to expand in November
The S&P Global preliminary PMIs for November are likely to show little variation from the October final readings. Markets are undecided on whether the Federal Reserve will lower the policy rate again in December.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.