Forex Today: US Dollar stabilizes ahead of next batch of US data
Here is what you need to know on Thursday, August 13:
On Thursday, August 13, the US Dollar (USD) displayed relative stability as financial markets remained subdued. Major currency pairs fluctuated within narrow weekly ranges. The following Thursday, Initial Jobless Claims and Producer Price Index (PPI) data for July will be released, with the USD showing the strongest performance against the New Zealand Dollar.
In the previous week, the US Bureau of Labor Statistics reported that annual inflation (CPI) declined to 3.4% in July, matching expectations. Monthly inflation rose by 0.1%, while the core CPI increased by 0.2% and 2.5% on a monthly and yearly basis, respectively. These figures satisfied market estimates and did not cause significant market reactions. The US Dollar Index experienced minor losses before entering a consolidation phase around 100.00 early Thursday.
Analysts from Deutsche Bank noted that markets focused on the benign CPI print, with the probability of a September Federal Reserve hike decreasing from 48% to 40%. However, despite the CPI report easing concerns about the upcoming Fed move, underlying structural issues persisted. Meanwhile, the UK's GDP expanded at an annual rate of 1.2% in the second quarter, slightly better than the anticipated 1.1%. Industrial and manufacturing production in the UK contracted on a monthly basis.
In other currency pairs, GBP/USD edged slightly lower following mixed UK data releases, while USD/JPY remained relatively stable, trading near 159.50. Gold hovered above $4,400, while crude oil prices remained flat at around $81.50.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
