This is what you need to know to trade today friday august 19:
The Dollar Index (DXY), which tracks the greenback against a basket of six major currencies, gained momentum in the second half of trading on Thursday, rising to its highest level in a month above 107.50. . In the absence of high-level macro data releases, DXY remains in a consolidation phase early on Friday. Meanwhile, the 10-year US Treasury bond yield remains above 2.9% and US stock index futures are down between 0.25% and 0.45%, helping the dollar. to stand firm against its main rivals.
Hard-line comments from Fed officials helped the dollar outperform its rivals. In an interview with CNN on Thursday, Mary Daly, president of the San Francisco Fed, said that “markets don’t understand, but consumers understand that rates won’t go down right after they go up.” As for the September rate decision, Daly said a 50 bps or 75 bps hike would be appropriate. Along the same lines, the president of the Federal Reserve of San Luis, James Bullard, indicated that he was leaning towards a rise of 75 basis points at the next meeting.
Earlier in the day, data from Germany revealed that the Producer Price Index (PPI) rose to 37.2% year over year in July, from 32.7% in June. This figure was much higher than market expectations, which were 32%. The pair EUR/USDwhich fell to its lowest level since mid-July below 1.0100, showed no immediate reaction to this data and is trading flat on the day above 1.0085.
The UK Office for National Statistics reported that retail sales rose 0.3% on a monthly basis in July, following a 0.2% contraction in June. Although this data was better than the market forecast of a 0.2% decline, it did not help the British pound to find demand. The GBP/USD It is trading in negative territory, slightly above 1.1900, after Thursday’s sharp drop.
The USD/JPY extended its recovery and closed Thursday for the third consecutive time in positive territory. At time of writing, the pair is up 0.3% on the day and stands at 136.30, trading at its highest level since July 28.
The Prayed It dipped below $1,760 on Thursday and struggled to rally. With US bond yields rising, XAU/USD remains lower near $1,755 early in the European session.
The Bitcoin came under heavy pressure and fell below $22,000 on Friday. After posting small losses on Thursday, ethereum it turned south and was last seen losing more than 5% on the day to around $1,750.
Source: Fx Street