{
  "id": 2321815,
  "title": "Forex Today: US Dollar stays near multi-month lows ahead of key PMI data",
  "url": "https://urgent.news/2026/08/21/forex-today-us-dollar-stays-near-multi-month-lows-ahead-of-key-pmi",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-21T06:44:11.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/forex-today-us-dollar-stays-near-multi-month-lows-ahead-of-key-pmi-data-202608210644"
  },
  "original_language": "en",
  "account": "On Friday, August 21, the US Dollar (USD) continued to hover near multi-month lows as investors awaited key Purchasing Managers' Index (PMI) data from various economies. The USD Index remained slightly above its three-month low of 98.50, set on Thursday. PMI data from Germany, the Eurozone, the UK and the US would be released on Friday, with the USD showing the weakest performance against the Swiss Franc.\n\nThe decline in the USD was attributed to the US Treasury Department's decision to increase long-term bond sales, which may have limited the impact of the Treasury's buybacks on market conditions. DBS Group Research economist Chang Wei Liang noted that \"tweaks around buybacks can only have a small, transient impact on markets\" as the fiscal trajectory remains unaffected by such adjustments.\n\nDespite the Dollar's weakness, geopolitical risks, such as an expected tightening of US sanctions on Iran, could potentially bolster the USD's appeal. St. Louis Fed President Alberto Musalem delivered a hawkish speech, emphasizing strong growth, accommodative financial conditions, and underlying inflation at 2.5%-3%, suggesting that raising rates now could prevent more aggressive actions in the future. This speech contributed to a supportive narrative for the USD, particularly as markets remained data-dependent regarding the September FOMC meeting.\n\nIn contrast, the British Pound (GBP) remained relatively stable, with the GBP/USD pair trading near 1.3650 after a decline in July. Meanwhile, gold prices surged to their highest level since late May, trading above $4,550. TD Securities attributed this bullish momentum to policy signals, including the Treasury's efforts to support the longer end of the yield curve and the Federal Reserve's willingness to overlook higher energy prices. However, the bank cautioned that \"with the market still pricing in hikes for 2027, the next leg higher for gold is unlikely to materialize before the broader market becomes more convinced that the Fed remains on hold.\" The USD/JPY pair also showed modest gains, erasing losses from the previous day and trading below 159.00.",
  "summary": "Here is what you need to know on Friday, August 21:",
  "key_points": [
    "US Dollar near multi-month lows ahead of PMI data release",
    "US Treasury Department increases long-term bond sales",
    "St. Louis Fed President Alberto Musalem delivers hawkish speech"
  ],
  "editors_take": "The US Dollar's weakness ahead of key PMI data reflects market focus on economic indicators over Treasury actions, with potential for safe-haven gains if geopolitical risks escalate, such as with Iran.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}