Market Overview for August 18th
Here’s the latest for Monday, August 18th:
Major currency pairs are showing some fluctuations, staying close to where they ended last week. Traders are, perhaps understandably, waiting for Ukrainian President Voldy Mie Zelensky to meet with U.S. officials, including President Donald Trump. The economic calendar looks pretty quiet today, with no significant data set to be released.
Current US Dollar Prices
The following table illustrates the changes in the value of the US dollar (USD) against several currencies. The USD appears to be the strongest compared to the euro today.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.13% | 0.05% | 0.01% | -0.11% | -0.07% | -0.21% | 0.04% | |
| EUR | -0.13% | -0.09% | -0.14% | -0.24% | -0.19% | -0.37% | -0.10% | |
| GBP | -0.05% | 0.09% | -0.12% | -0.15% | -0.12% | -0.29% | -0.06% | |
| JPY | -0.01% | 0.14% | 0.12% | -0.11% | -0.07% | -0.20% | 0.02% | |
| CAD | 0.11% | 0.24% | 0.15% | 0.11% | 0.00% | -0.10% | 0.10% | |
| AUD | 0.07% | 0.19% | 0.12% | 0.07% | -0.01% | -0.17% | 0.09% | |
| NZD | 0.21% | 0.37% | 0.29% | 0.20% | 0.10% | 0.17% | 0.21% | |
| CHF | -0.04% | 0.10% | 0.06% | -0.02% | -0.10% | -0.09% | -0.21% |
This table shows how each major currency has changed relative to one another. If you look at USD against JPY, for instance, the value indicated reflects USD’s position compared to JPY.
After Trump’s recent discussions with Russian President Vladimir Putin, U.S. Special Envoy Steve Witkov noted that the U.S. will extend security assurances to Ukraine. He clarified that this arrangement does not give Putin leverage against NATO or obstruct Ukraine’s aspirations for NATO membership. Reports suggest that Trump has communicated to Zelensky that some concessions to Russia may be necessary. Consequently, the market started the week with caution, and U.S. stock index futures dipped by about 0.1%. Meanwhile, the US Dollar index stays almost steady just below 98.00, following a tough week.
EUR/USD The European session is expected to remain quiet around the 1.1700 mark after some modest gains last week. Retail data from EuroStat for June will be released later.
AUD/USD The pair is trading slightly higher today above 0.6500 this morning. Traders will be on the lookout for Westpac’s consumer confidence data for August, set to be released early Tuesday in Asia.
USD/CAD This pair has held steady around 1.3800 this week. Statistics Canada is set to release July’s Consumer Price Index data on Tuesday.
GBP/USD After gains over the last two weeks, this pair seems to be consolidating around 1.3550. Investors will keep an eye on the UK’s July inflation data later this week.
USD/JPY Following a drop of about 0.4% last week, it’s moving sideways just above 147.00 as the week begins.
Gold The price stands over $3,350 during European trading hours. XAU/USD has decreased nearly 2% last week, breaking a two-week winning streak.
Risks of Sentiment FAQ
In finance, the terms “risk-on” and “risk-off” are common. A “risk-on” environment indicates that investors are optimistic, while a “risk-off” scenario suggests caution, with tendencies to engage more in safer assets.
During “risk-on” periods, stock markets typically rise, and most commodities (excluding gold) follow suit. The currencies of countries that rely heavily on commodities strengthen as demand increases. Contrarily, in “risk-off” scenarios, bonds see an uptick, especially safer ones like gold, and stable currencies such as the US dollar, yen, and Swiss franc often gain value.
Minor currencies like the Australian dollar, Canadian dollar, and New Zealand dollar usually appreciate during “risk-on” markets due to their reliance on exports. In contrast, the major ones that flourish during “risk-off” phases are the US dollar, yen, and franc, positioned as reserves during crises because of their stability and investor trust in their economies.
