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Forex Today: Key EU and US inflation data will inject volatility into markets

This is what you need to know to trade today Thursday August 31:

The major currency pairs are relatively quiet early Thursday, after the volatility on Wednesday. Market participants will closely monitor Eurozone inflation figures later in the session, before the European Central Bank (ECB) publishes the minutes of the monetary policy meeting. In the second half of the day, the US economic agenda will include the Personal Consumption Expenditure Price Index (PCE), the Federal Reserve’s preferred inflation gauge, and weekly data on initial jobless claims.

The US Bureau of Economic Analysis announced that it had revised downward the annualized growth of the Gross Domestic Product (GDP) in the second quarter to 2.1% in his second estimate, from 2.4% of the initial estimate. Besides, ADP reported that employment in the private sector increased by 177,000 people in August, below market expectations of an increase of 195,000 people. The 10-year US Treasury yield fell towards 4% on the disappointing data release and the dollar struggled to find demand during the American session. He DXY dollar index closed for the third consecutive day in negative territory. Although the DXY Index is holding steady above 103.00 in the European morning, it has lost almost 1% since the start of the week.

US dollar price today

The following table shows the percentage change of the US dollar (USD) against the main currencies.

USD 0.24% 0.02% 0.06% 0.01% -0.10% 0.00% 0.16%
USD -0.24% -0.18% -0.17% -0.23% -0.34% -0.22% -0.07%
GBP -0.05% 0.17% 0.01% -0.07% -0.16% -0.04% 0.09%
CAD -0.06% 0.16% -0.04% -0.05% -0.17% -0.06% 0.10%
AUD 0.02% 0.22% 0.08% 0.06% -0.08% 0.03% 0.15%
JPY 0.11% 0.34% 0.12% 0.15% 0.12% 0.12% 0.26%
USD 0.01% 0.25% 0.04% 0.03% 0.00% -0.11% 0.15%
CHF -0.17% 0.06% -0.12% -0.11% -0.16% -0.27% -0.16%

The heat map shows the percentage changes of major currencies against each other. The base currency is chosen in the left column, while the quote currency is chosen in the top row. For example, if you choose the Euro in the left column and move across the horizontal line to the Japanese Yen, the percentage change in the box will represent EUR (base)/JPY (quote).

He National Bank of China manufacturing PMI rose to 49.7 in August and the non-manufacturing PMI fell to 51, Chinese data has shown in the Asian session. Meanwhile, ANZ New Zealand Activity Outlook Index jumped as high as 11.2% in August from 0.8% in July, while the ANZ Business Confidence Index came in at -3.7, below market expectations of -1.9. He NZD/USD has struggled to take a decisive stance following the release of this data and is now trading sideways around 0.5950.

He EUR/USD it touched its highest level in two weeks near 1.0950 on Wednesday before entering a consolidation phase slightly above 1.0900 early on Thursday.

He GBP/USD It posted gains for a third straight day on Wednesday, but lost its bullish momentum on Thursday’s European morning. At time of writing, the pair is trading in negative territory around 1.2700.

After the fall on Tuesday, the USD/JPY it recovered modestly on Wednesday. The pair is now trading in a tight range around 146.00.

The price of Gold It benefited from falling US yields on Wednesday and touched its highest level in a month near $1,950. In the early hours of the European session, XAU/USD consolidates its weekly gains near $1,940.

He Bitcoin it staged a downward correction after Tuesday’s impressive recovery and lost more than 1% on Wednesday. In the European morning, BTC/USD is calm near $27,200. He ethereum It is moving sideways around $1,700 after losing 1.4% on Wednesday.

Source: Fx Street

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