What you need to know on Thursday, August 5:
The dollar rose after US Federal Reserve Vice Chairman Clarida said that if core inflation hits 3% this year, he would consider it “much more” than a moderate overshoot. He added that he expects the conditions to increase interest rates to be met by the end of 2022 if inflation and employment results meet his forecasts. Additionally, ISM’s services PMI jumped to 64.1 in July, beating expectations. However, the ADP survey showed that the private sector added just 330,000 in July.
On Thursday, the focus will be on the Bank of England. The central bank is having a super Thursday and is ready to leave its monetary policy unchanged and publish new projections in its Monetary Policy Report. Gov. Andrew Bailey is scheduled to deliver a speech afterward. Market participants will look for signs of adjustment.
EUR / USD is trading at weekly lows around 1.1840. GBP / USD is hovering around 1.3900, unchanged as the BOE approaches. Commodity-linked currencies fell, with AUD / USD back below 0.7400 and USD / CAD trading around 1.2550.
The USD / JPY pair recovered from a daily low of 108.71, a level that was the last since May, to the current price zone of 109.40, amid a reversal in demand for the dollar. Japan is fighting an increase in coronavirus cases and the head of the local Medical Association called for a nationwide state of emergency.
Gold jumped to $ 1,831.71 a troy ounce, but trimmed gains and ended the day at around $ 1,812. Crude oil prices fell sharply and the WTI settled at $ 68.00 a barrel. The US Energy Information Administration said crude stocks rose an unexpected 3.6 million barrels last week, putting pressure on black gold.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
