In August, the USD strengthened against major currencies, with the dollar index up 2.28%, EURUSD down 1.83%, USDJPY up 2.83%, GBPUSD down 1.96%, USDCAD up 3.25%, and AUDUSD down 4.64%. Meanwhile, major global stock indices experienced declines, led by Hong Kong's Hang Seng index and China's Shanghai composite index.
The US Dollar performed well against major currencies, with the British Pound, Euro, and Canadian Dollar underperforming, while the Chinese Yuan and Australian Dollar fared better; the Federal Reserve's indication of a higher terminal rate and potential further borrowing cost increases contributed to the market sentiment, leading to lower US equity markets; upcoming economic data includes consumer confidence, inflation gauges from key European countries, and manufacturing PMI gauges from China.
The US Dollar experienced a significant decline due to weak economic data and increased risk appetite, while the Euro and British Pound strengthened. The Australian Dollar and New Zealand Dollar also performed well, and gold and cryptocurrencies rallied.
The US dollar experienced a major technical reversal due to a weaker JOLTs report, leading to a drop in US interest rates, while market positioning played a role in the price action; the focus now shifts to personal consumption figures and US jobs data, with the euro and sterling firm but most other G10 currencies softer, and emerging market currencies mixed. In Asia, most large bourses advanced, but Europe's Stoxx 600 fell after rallying in previous sessions, while US index futures traded softer; European bonds are selling up, gold is consolidating, and oil prices are firm. Australia's CPI slowed more than expected, China is expected to release the August PMI, and Japan reports July retail sales. The US dollar has seen no follow-through selling against the yen, yuan, or Australian dollar, while the euro and sterling staged impressive price action. The JOLTS report saw the dollar and US rates reverse lower, and today the US reports advanced merchandise trade figures for July, with the Canadian dollar as the worst performing G10 currency yesterday.
The US dollar has experienced a significant bounce in August, driven by strong US economic data and upward revisions to growth forecasts, making it the only G-10 economy to see positive revisions and outperform the rest of the G-10 currencies this month.
The dollar strengthens against the yen and keeps the euro and sterling near three-month lows as investors rely on the resilience of the U.S. economy, while China's onshore yuan hits a 16-year low due to a property slump and weak consumer spending.
The value of the U.S. dollar has been strengthening against the Euro and the British Pound due to the continuing strength of the U.S. economy and the weakness of the European economies.
The US Dollar performed strongly against major currencies, with the Euro experiencing its 8th consecutive weekly loss and the Chinese Yuan performing poorly, while global market sentiment was negative and stock markets weakened. In the coming week, market focus will be on the US inflation report, UK employment and GDP data, Australian employment data, and the ECB rate decision.
GBP/USD declined as investors placed dovish bets on the Bank of England, UK labour market data came in weak, and British yields fell as markets anticipate a less aggressive BoE.
The pound weakened against the dollar as Britain's economy contracted at its sharpest rate in seven months in July due to strikes, poor weather, and the dampening effect of higher interest rates.
The U.S. dollar stabilized as traders await U.S. inflation data, while sterling weakened after the U.K. economy contracted more than expected in July.
The US Dollar underperformed against major currencies last week, crude oil continued to rally, and gold prices were cautiously higher, while upcoming events like central bank rate decisions and the Bank of England rate hike are expected to impact the market.
The US dollar remains stable in Asian trades as the yen and sterling experience slight fluctuations due to upcoming central bank meetings, including the Bank of Japan's policy meeting, the US Federal Reserve's hawkish pause, and the Bank of England's possible interest rate increase.
The GBP/JPY is falling back to the midrange after failing to maintain a bullish push, while investors wait for Japan trade balance figures and the Bank of England's rate call.
The BRICS bloc, including countries like India, China, and Russia, is slowly reducing its dependency on the US dollar and using their local currencies for trade, which could potentially weaken the US dollar's position as the dominant global currency.
Summary: The US Dollar had mixed performance against major currencies, with the British Pound weakening and the New Zealand Dollar rallying; Wall Street took a hit after the Federal Reserve announcement, and the 10-year Treasury yield surged to its highest level since late 2007.
The Pound (GBP) experienced further losses due to a contraction in the UK's service sector, intensifying recession fears and suggesting an end to interest rate hikes by the Bank of England (BoE), while the Euro (EUR) saw mixed trade and the US Dollar (USD) lacked a clear trajectory on Friday.
The EUR/GBP pulled back from recent highs and settled at 0.8660, while upcoming economic data and the ECB's economic bulletin are expected to have limited market impact.
Despite contracting UK economic data, the GBP/USD rebounds due to a weakening US Dollar and positive market sentiment.
The U.S. dollar reached a one-week high against other currencies following the release of U.S. consumer prices data, which increased expectations for higher interest rates; safe-haven buying also contributed to the dollar's strength due to escalating Middle East conflict.
EUR/USD rebounds after recent weakness, but geopolitical tensions in the Middle East continue to pose a risk for riskier currencies.
The pound weakened against the euro and the dollar due to concerns about the British economy, with weak retail sales data and global market sentiment contributing to the decline.
The GBP/USD is looking to squeeze out some gains before the Friday closing bell, despite a miss for UK Retail Sales earlier in the day, benefiting from a general softening in the US Dollar.
The Pound Sterling (GBP) is facing some sell-off and pressure, but it is expected to have potential upside due to improved market sentiment and better-than-anticipated UK labor market data, despite the fact that labor demand has slowed and the Bank of England (BoE) is expected to leave interest rates unchanged.
