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The US Dollar strengthened across the board amid risk aversion and higher Treasury yields, with the Dow Jones index declining by 0.85%.
Concerns over the Chinese economy and expectations of higher interest rates for a longer period contributed to market worries. US Treasury yields ended the session with mixed performance, with the 10-year yield reaching a peak at 4.32% and the 30-year yield reaching 4.42%.
No significant data releases are expected from the US on Friday, with the focus shifting to the Jackson Hole Symposium. EUR/USD initially rose to 1.0920 but pulled back during American trading hours, falling to 1.0855.
The Japanese Yen managed to recover ground despite rising government bond yields, with the decline in equity markets supporting the Yen and some loss of momentum in the US Dollar.
USD/JPY experienced its worst daily loss in two weeks and fell below 146.00. The National Consumer Price Index is expected to show a 2.5% increase from a year ago, lower than the 3.3% observed in June. GBP/USD rose significantly on Thursday.
What to Watch on Thursday:
The UK economic data will conclude the trading week with the release of Retail Sales, with the Pound being the top-performing currency of the week among major currencies.
On Friday, August 18, economic data will be relatively quiet. Japan will release the National Consumer Price Index, which is expected to show a slowdown from 3.3% to 2.5%. The UK will report retail sales later in the day.
The Eurozone will release the final reading of the July Consumer Price Index, which is expected to be a non-event with no surprises. Eurostat will also release Construction Output data for June.
Economic Data
US Initial Jobless Claims declined to 239,000 in the week ended August 12, but Continuing Jobless Claims rose to 1.716 million in the week ended August 5.
The Philadelphia Fed Manufacturing Survey showed a significant positive surprise by rising from -13.5 to 12.
Also Read:
Oil reacts to China’s effort to ease economic concerns
EUR/GBP extends downtrend amid Sterling’s strength
EUR/USD slides further on risk aversion, stronger dollar
USD/CHF retreats amid US dollar’s robust stance
USD/JPY weakens amid rising US yields, global economic fears
