GBP/USD: Cable is trading mixed today, having shown a bearish dynamic yesterday. The markets are in the consolidation phase. Investors will now primarily focus on US July inflation data, which will be published this Wednesday, in the Consumer Price Index. Experts expect a decline to 5.3%. The Producer Price Index will be released on Thursday. These will be the last key inflation readings ahead of the Jackson Hole Symposium to be held in the last week of August. It’s important to note that the Fed’s preferred measure of core PCE will be reported on August 27. The Jackson Hole event will be closely watched for a more tapering timeline from the Federal Reserve, which could provide additional support for the greenback buyers.
NZD/USD: New Zealand dollar is extending its previous session’s downward momentum in the Asian session today. The pair is trading in a very narrow range without any meaningful dynamic. Yesterday’s report showed that U.S. job openings jumped to a record high in June, and hiring increased. That happened on the back of Friday’s U.S. monthly jobs report that showed U.S. employers hired the most workers for the last year in July and continued to raise wages. Meanwhile, the U.S. Senate moved gradually toward a $1 trillion infrastructure bill, which added optimism to the greenback. In addition to that, the increasing coronavirus cases in the Asia-Pacific region support the demand for the U.S. dollar as a safe-haven asset.
WTI: Oil has been trying to hold on at a three-week low after extending last week’s drop as investors estimate the supply vs. demand risks with the resurgence of a global coronavirus pandemic. Demand is falling, and expectations are that the covid-related restrictions in Asia, especially China, could slow a global recovery in fuel demand even further. US air travel industry doesn’t show any progress for almost two months due to ongoing travel restrictions. With the risks of covid coupled with a strong US dollar, the oil prices are becoming less attractive to investors.