The US Dollar (USD) is having a hard time holding its recent gains against major currencies after Thursday’s short-lived rebound. Traders are now turning their attention to critical US economic data scheduled for release later today.
The US economic calendar features:
- Retail Sales and Industrial Production figures for July.
- University of Michigan’s Preliminary Consumer Sentiment Survey for August, including the Consumer Confidence Index and 1-year Consumer Inflation Expectations.
US Dollar Performance This Week
The table below shows the percentage change of the US Dollar against key global currencies this week. The USD was weakest against the British Pound (GBP).
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF |
|---|---|---|---|---|---|---|---|
| -0.25% | -0.77% | -0.32% | 0.30% | 0.22% | 0.57% | -0.32% | |
| 0.25% | -0.52% | -0.05% | 0.56% | 0.48% | 0.79% | -0.05% | |
| 0.77% | 0.52% | 0.42% | 1.09% | 1.00% | 1.32% | 0.47% | |
| 0.32% | 0.05% | -0.42% | 0.67% | 0.59% | 0.98% | 0.16% | |
| -0.30% | -0.56% | -1.09% | -0.67% | -0.07% | 0.22% | -0.63% | |
| -0.22% | -0.48% | -1.00% | -0.59% | 0.07% | 0.31% | -0.52% | |
| -0.57% | -0.79% | -1.32% | -0.98% | -0.22% | -0.31% | -0.83% | |
| 0.32% | 0.05% | -0.47% | -0.16% | 0.63% | 0.52% | 0.83% |
Note: The heat map measures changes with the base currency on the left and the quote currency at the top.
Political Focus: US–Russia Talks in Alaska
Markets are also keeping an eye on geopolitical developments as US President Donald Trump meets Russian President Vladimir Putin in Alaska. This high-profile meeting could influence market sentiment ahead of the weekend.
Why the US Dollar Strengthened on Thursday
The USD gained traction after the Bureau of Labor Statistics (BLS) reported a sharp rise in producer inflation.
- Producer Price Index (PPI) surged to 3.3% in July (up from 2.4% in June).
- Core PPI climbed to 3.7% year-on-year, up from 2.6% in June.
This hotter-than-expected inflation boosted US Treasury yields, putting pressure on gold prices.
Asian Market Recap
In the Asian session, China’s data came in weaker than expected:
- Retail Sales grew 3.7% YoY in July (forecast: 4.6%).
- Industrial Production expanded 5.7%, down from 6.8% in June.
After a 0.8% loss on Thursday, AUD/USD bounced back above 0.6500 early Friday.
Currency Market Snapshot
- USD/JPY: Trading near 147.00, under bearish pressure despite Japan’s GDP growing 1% annually in Q2 (forecast: 0.4%).
- EUR/USD: Staying above 1.1650 with no major EU data releases today.
- GBP/USD: Recovering above 1.3550 after a 0.3% drop on Thursday.
Gold Price Update
Gold (XAU/USD) slipped over 0.5% on Thursday due to stronger US yields. Prices remain steady below $3,350 in Friday’s European session
