Forex Today: The dollar remains firm awaiting housing data

- Advertisement -

This is what you need to know to trade today Thursday August 18:

The Dollar Index ( DXY ) posted its highest daily close in three weeks on Wednesday and continued to rise during Asian trading hours on Thursday. As market sentiment remains cautious, the dollar continues to outperform its rivals. In the European session, Eurostat will publish the final version of July inflation data for the Eurozone, which is not expected to show any change from the preliminary annual estimate of 8.9%. In the second half of the day, July Existing Home Sales and weekly Initial Jobless Claims data will headline the US economic docket.

- Advertisement -

Late on Wednesday, minutes from the Federal Reserve’s July monetary policy meeting revealed that all participants agreed that a 75 basis point rate hike was appropriate. “Participants agreed that future rate hikes would depend on the information received and judged that at some point it would be appropriate to slow the pace of increases,” the publication further read, which did not provoke a notable reaction from the market. .

During the Asian session, the Australian Bureau of Statistics reported that the unemployment rate dipped to 3.4% in July. On the downside, the employment change came in at -40,900, missing market expectations for a 25,000 rise by a wide margin. After Wednesday’s sharp drop, the AUD/USD remains under bearish pressure and continues to push towards 0.6900.

- Advertisement -

The EUR/USD it trades in a relatively tight range above 1.0150 having closed the previous day largely unchanged. Earlier in the day, Isabel Schnabel, a member of the Executive Committee of the European Central Bank (ECB), declared that a technical recession in the euro zone was possible.

The GBP/USD came under further downward pressure in the early European session on Thursday and started to slide towards 1.2000.

The USD/JPY took advantage of the rise in the US Treasury bond yield and rose above 135.00. At press time, the pair was up 0.2% on the day and trading at 135.30.

With the 10-year US Treasury bond yield rising more than 3% on Wednesday, the Prayed closed the third day in a row in negative territory and was last seen moving sideways around $1,760.

The Bitcoin lost more than 2% before entering a consolidation phase below $23,500. ethereum posted losses for the fourth day in a row on Wednesday and was last seen consolidating its latest decline near $1,850.

Source: Fx Street

- Advertisement -


Please enter your comment!
Please enter your name here

Hot Topics

Related Articles