The Greenback continued to face selling pressure, leading to subdued price action due to further confirmation of US inflation on July’s CPI data. On August 15, the USD Index dropped to multi-day lows near 102.30 as US disinflationary pressures persisted. A busy US calendar for the day included important economic releases such as Retail Sales, Philly Fed Manufacturing Index, Initial Jobless Claims, and others. Additionally, speeches from Fed officials Musalem and Harker were scheduled.
EUR/USD surged to new 2024 highs around 1.1050 as the Greenback weakened further. No major data releases were expected on the euro docket for the day. GBP/USD faced pressure as market participants anticipated 50 bps of easing from the Bank of England following UK CPI readings. Key economic releases for the day included GDP Growth Rate, Balance of Trade, Construction Output, and others.
USD/JPY traded in a consolidative range near the 147.00 region, alternating between gains and losses. GDP Growth Rate data took centre stage for the day, along with other releases such as Foreign Bond Investment and Industrial Production. AUD/USD retraced some gains after hitting highs near 0.6650, with key data releases including Consumer Inflation Expectations and the jobs report.
WTI prices dipped below $78.00 per barrel for the second consecutive day, influenced by easing geopolitical tensions and demand concerns. Gold prices dropped to two-day lows near $2,440 per ounce troy as investors reassessed the Fed’s rate path. Silver prices also retreated to four-day lows near $27.20 per ounce amid weakness in the commodity complex and Chinese concerns.
In conclusion, the Greenback faced persistent selling pressure which led to subdued price action on August 15. Key economic releases and speeches from Fed officials influenced market sentiment across various currency pairs and commodity prices. Investors closely monitored data releases and geopolitical developments to make informed trading decisions amid ongoing uncertainties in the global markets.
