What to watch for on Wednesday, August 17:
Caution prevailed on Tuesday as the focus remains on a potential global recession. The dollar maintained its dominance despite a brief boost early in the American session.
The EUR/USD pair extended its weekly decline to 1.0121 and ended the day around 1.0160. The European energy crisis remains in the eye of the storm, while the Union tries to reach a nuclear agreement with Iran. Meanwhile, Germany plans to postpone the closure of the last three nuclear power plants in the country.
GBP/USD is trading around 1.2090 after the release of unimpressive UK jobs data. The ILO unemployment rate stood at 3.8% in the three months of June,
The USD/CAD pair fell and ended the day at 1.2840. Bank of Canada Governor Macklem said inflation may have peaked after the release of the consumer price index for July, which rose less than expected.
The AUD/USD pair ended the day flat around 0.7020.
The dollar appreciated against its safe-haven rivals, with USD/CHF trading around 0.9500 and USD/JPY around 134.20.
Gold dipped slightly, now trading at $1,777 a troy ounce. Oil prices fell steadily, with WTI trading at $86.30 a barrel.
Treasury yields advanced, and the yield curve remains inverted. The 10-year Treasury bond yield currently stands at 2.81%.
Wall Street is mixed, with the DJIA posting significant gains, the S&P 500 rising modestly and the Nasdaq Composite giving up some ground.
The macroeconomic calendar will get more interesting on Wednesday, with figures for Australian wages, EU GDP and the US FOMC Meeting Minutes.
Source: Fx Street
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