The US dollar (USD) continued its downward journey on Wednesday, hitting its lowest level in a few days. In the realm of central banks, both the Bank of England and Banikosiko are anticipated to implement a 25 basis points cut.
This is what you’ll see on Thursday, August 7th:
The US Dollar Index (DXY) managed to reverse two days of declines, settling around the 98.10 zone, which marks a multi-day low, while also testing the 55-day SMA. This week’s data includes initial unemployment claims, supported by wholesale inventory stats, Flash Q2 unit labor costs, and the New York Fed’s consumer inflation expectations. Upcoming discussions featuring Fed Bostic and Musalem are also on the agenda.
The EUR/USD pair climbed above the 1.1600 level due to increasing sales pressures on the dollar. The German trade balance will be under scrutiny.
The GBP/USD saw an upward trend, reaching about 1.3370 as the Bank of England’s interest rate decision approaches. Additionally, the Halifax home price index and a BOE DMP survey are expected.
Meanwhile, USD/JPY reversed Tuesday’s gains, shifting focus to the downside amid a broader pullback in the US dollar. Weekly foreign bond investment figures, along with a significant economic index and another detailed index, are due for release.
The AUD/USD traded firmly below the 0.6500 threshold, continuing the downward trend from Monday. Australia’s trade balance will be published before final building permits and private approvals data are released. RBA Connolly is scheduled to speak as well.
WTI crude prices fell below $64.00 per barrel for the first time since early June, following Trump’s threats related to India and deadlines involving Russia.
Gold maintained positive momentum for several days, nearing $3,360 per troy ounce amidst a rise in the US dollar, and speculation around Trump’s potential nominee. In contrast, silver prices fluctuated, moving between profits and losses below the $38.00 per ounce mark.
