Home Daily Commentaries USD edges lower against a basket of currencies

USD edges lower against a basket of currencies

Daily Currency Update

The US dollar slightly declined against a basket of other major currencies, putting an end to its five-week period of gains. Traders adopted a cautious approach as they awaited the U.S. Federal Reserve's Jackson Hole symposium scheduled for Friday. There's an anticipation that central banks might decide to maintain elevated interest rates, leading to this cautious stance.

Data enthusiasts will have their attention drawn to the upcoming August flash PMI surveys from both Europe and the US. The week is anticipated to be relatively quiet in terms of significant data releases.

Key Movers

Projections indicate that the Eurozone's flash manufacturing PMI will likely remain deeply contracted, with the market's forecast at 42.8 compared to July's figure of 42.7. Meanwhile, the German PMI is expected to reveal a discouraging 38.7 reading, down from July's 38.8.

Additional data coming out of the Eurozone comprises the German IFO and the Eurozone's current account figures. In the UK, the highlight will be the August flash PMI, although no other high-impact data is scheduled for release.

Expected Ranges

  • GBP/USD: 1.2745 - 1.2835 ▲
  • GBP/EUR: 1.1685 - 1.1745 ▲
  • EUR/USD: 1.0895 - 1.0955 ▲