The Greenback, represented by the USD Index (DXY), faced continued selling pressure in the market as US inflation data pointed towards a downward trend in July’s CPI numbers. This led to the USD Index dropping to multi-day lows near 102.30, highlighting the persisting disinflationary pressures in the US economy.
Looking ahead to August 15, a busy US economic calendar is set to feature key data releases and events including 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 by Federal Reserve’s Musalem and Harker are also scheduled for the day.
In the foreign exchange market, the Euro (EUR/USD) strengthened further against the Greenback, hitting new 2024 highs around 1.1050. Meanwhile, the British Pound (GBP/USD) faced downward pressure as expectations grew for a potential 50 bps easing by the Bank of England following UK CPI readings. Key data releases for the Pound on August 15 include GDP Growth Rate, Balance of Trade results, Construction Output, Industrial Production, Manufacturing Production, and the NIESR Monthly GDP Tracker.
The USD/JPY currency pair saw mixed trading near the 147.00 region, reflecting a broader consolidative range in the market. On the economic front, GDP Growth Rate data will take center stage for USD/JPY on August 15, along with Foreign Bond Investment and final Industrial Production figures. Meanwhile, the Australian Dollar (AUD/USD) experienced a slight pullback after reaching highs near 0.6650, with upcoming data releases including Consumer Inflation Expectations and the jobs report.
In the commodities market, WTI prices dipped below $78.00 per barrel as geopolitical tensions eased and demand concerns weighed on the market sentiment. Gold prices also retreated to two-day lows near $2,440 per ounce, reflecting a reassessment of the Fed’s rate path by investors. Similarly, Silver prices fell to four-day lows near $27.20 per ounce, influenced by weakness in the broader commodity complex and concerns related to China.
The Greenback’s struggles continue as US economic data and global events shape market sentiment and currency movements. Traders and investors are closely monitoring upcoming data releases and geopolitical developments for further insights into the future direction of major currency pairs and commodities.
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