EUR/USD: The EUR/USD reached a daily low at 1.1721 yesterday and then bounced to the upside cutting its losses. It still remains in the red zone but the dollar’s momentum is weakening. The US dollar showed growth after the release of US economic data. Initial jobless claims dropped as expected, while continuing claims fell under 3 million for the first time since the pandemic started. In a different report, inflation numbers came in above expectations as well as the Producer Price Index which rose 1% in July, against market consensus of 0.6%. During the American session, the dollar lost momentum and pulled back as a result of low volatility. On the upside, the recovery of EUR/USD could be tough for bulls due to strong resistance at 1.1750. If the euro breaks this level it will probably receive a bullish impulse and keep growing.
AUD/USD: The AUD/USD pair came under bearish pressure again during the last American trading hours on Thursday and dropped to a daily low of 0.7335 as rising US Treasury yields bolstered the US dollar. In the meantime, Wall Street’s main indexes were traded slightly lower after the opening, preventing the Aussie from staging a rebound. Friday won’t bring any important macroeconomic data releases for the Australian economy and the USD market valuation will probably keep driving AUD/USD movements ahead of the weekend.
Gold: Gold prices showed a bullish dynamic, having reached a daily high above $1.750 and recorded some mild gains, pushing aside the previous sell-off. The prices seem to be stabilizing now to make a consolidative move in a trading range. The higher USD valuation, which makes the precious metal attractive for other currency holders, continues to exert pressure on gold’s upside. It’s important to note that today the University of Michigan will announce the Consumer Sentiment Index for August which will be the only data featured in the US economy. That’s why gold will probably preserve its quiet dynamic ahead of the weekend.