Here’s what you need to know on Thursday, August 15:
The US Dollar (USD) consolidates its weekly losses against its main rivals early on Thursday. In the second half of the day, the US economic calendar will include the weekly data on Initial Jobless Claims, Retail Sales and Industrial Production figures for July. Market participants will also keep a close eye on manufacturing surveys from the Federal Reserve (Fed) regional banks and comments from Fed policymakers.
He USD The USD Index failed to attract buyers on Wednesday after data released by the US Bureau of Labor Statistics showed that the Consumer Price Index (CPI) and Core CPI rose 0.2% on a monthly basis in July, as expected. The USD Index closed the fourth consecutive day of trading in the red on Wednesday and the US 10-year Treasury bond yield fell towards 3.8%. In early trading on Thursday, the USD Index is holding steady around 102.50 and the 10-year yield is moving sideways slightly above 3.8%. Meanwhile, US stock index futures are trading slightly higher after major Wall Street indexes posted modest gains.
US Dollar PRICE This week
The table below shows the percentage change of the US Dollar (USD) against the major currencies this week. The US Dollar was the weakest currency against the Euro.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.88% | -0.73% | 0.43% | -0.23% | -0.69% | -0.06% | 0.06% | |
| EUR | 0.88% | 0.18% | 1.30% | 0.66% | 0.08% | 0.83% | 0.97% | |
| GBP | 0.73% | -0.18% | 1.36% | 0.48% | -0.11% | 0.64% | 0.79% | |
| JPY | -0.43% | -1.30% | -1.36% | -0.63% | -1.18% | -0.48% | -0.38% | |
| CAD | 0.23% | -0.66% | -0.48% | 0.63% | -0.52% | 0.17% | 0.32% | |
| AUD | 0.69% | -0.08% | 0.11% | 1.18% | 0.52% | 0.75% | 0.89% | |
| NZD | 0.06% | -0.83% | -0.64% | 0.48% | -0.17% | -0.75% | 0.14% | |
| CHF | -0.06% | -0.97% | -0.79% | 0.38% | -0.32% | -0.89% | -0.14% |
The heatmap shows percentage changes of major currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you choose the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change shown in the chart will represent the USD (base)/JPY (quote).
The UK Office for National Statistics reported in the European morning that UK Gross Domestic Product (GDP) expanded at an annual rate of 0.9% in the second quarter. This reading followed the 0.3% growth recorded in the first quarter and was in line with market expectation. Other UK data showed that Manufacturing Output and Industrial Production rose by 1.1% and 0.8% respectively on a monthly basis in June. GBP/USD rose following this data and was last seen trading around 1.2850.
During Asian trading hours, data from Australia showed that the unemployment rate rose to 4.2% in July from 4.1% in June. The employment change in the same period stood at +58,200, beating the market expectation of 20,000. After closing in negative territory on Wednesday, the AUD/USD gained traction and rose above 0.6600. Meanwhile, China’s National Bureau of Statistics announced that Retail Sales grew by 2.7% year-on-year in July, compared with the 2% increase recorded in June.
Japan’s Cabinet Office reported in the first Asian session that GDP grew at an annual rate of 3.1% in the second quarter, after a contraction of 2.3% in the previous quarter. USD/JPY failed to make a decisive move in either direction following this data and was last seen moving sideways in its weekly range just above 147.00.
He EUR/USD gained bullish momentum and reached its highest level of 2024 near 1.1050 on Wednesday. The pair makes a technical correction in the European morning on Thursday, but manages to hold above 1.1000.
He Gold The pair struggled to attract buyers on Wednesday and lost over 0.5% on the day. XAU/USD is holding firm in the European session and is trading in positive territory above $2,450.
GDP FAQs
A country’s gross domestic product (GDP) measures the growth rate of its economy over a given period of time, usually a quarter. The most reliable figures compare GDP with the previous quarter (for example, Q2 2023 with Q1 2023) or with the same period a year earlier (for example, Q2 2023 with Q2 2022).
Annualized quarterly GDP figures extrapolate the quarter’s growth rate as if it were constant for the rest of the year. However, they can be misleading if temporary shocks affect growth in one quarter but are unlikely to last the entire year, as was the case in the first quarter of 2020 with the outbreak of the coronavirus pandemic, when growth plummeted.
A higher GDP result is usually positive for a nation’s currency, as it reflects a growing economy, which is more likely to produce goods and services that can be exported, as well as attract more foreign investment. Similarly, when GDP falls it is usually negative for the currency.
When an economy grows, people tend to spend more, which causes inflation. The country’s central bank then has to raise interest rates to combat inflation, with the side effect of attracting more capital inflows from global investors, which helps the local currency appreciate.
When an economy grows and GDP increases, people tend to spend more, which causes inflation. The country’s central bank then has to raise interest rates to combat inflation. Higher interest rates are negative for Gold because they increase the opportunity cost of holding Gold versus putting the money in a cash deposit account. Therefore, a higher GDP growth rate is usually a bearish factor for the price of Gold.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
