Categories: Markets

Forex today: The dollar remains victorious for another month

Forex today: The dollar remains victorious for another month

What to watch for on Thursday, September 1:

The US dollar ended the month of August with substantial gains across the currency board. On Wednesday, it rose against most of its major rivals, although the EUR/USD pair advanced for the third day in a row and traded around 1.0050.

The EU’s Harmonized Index of Consumer Prices (HICP) rose 9.1% year-on-year in August, up from 8.9% in July, while the core reading for the same period jumped to 4.3% from 4% in the previous month. Both figures exceeded market expectations and were at record highs, which goes some way to justifying the change in position of European policymakers.

The dollar suffered a temporary setback earlier in the US session when the ADP report disappointed, showing that the private sector added just 132,000 new jobs in August. However, the currency rallied before the close as US Treasury yields hit new weekly highs, while US indices closed in the red for the second day in a row.

GBP/USD is struggling to hold the 1.1600 threshold, while AUD/USD is trading at weekly lows in the 0.6840 zone. The USD/CAD pair shot up and is now hovering around 1.3130.

Haven currencies eased modestly against their US rival, with USD/CHF now at 0.9780 and USD/JPY at 138.90.

Oil prices fell after the US Department of Defense spokesman announced that G7 finance ministers would discuss limiting Russian oil prices on Friday. WTI stood at $89.10 a barrel. Spot gold entered the Asian session trading around $1,710 a troy ounce, its lowest in more than a month.

Source: Fx Street