Forex Today: US Dollar Weakens Again - 08 August 2024

After several volatile days, markets begin to calm as formerly wild swings die down, and the US Dollar index trades lower.

  1. The past day has seen markets start to calm down and slow the big swings. Stock markets are mixed today and the US Dollar is weaker.
  2. In the Forex market, the US Dollar is the weakest major currency, while the Australian Dollar is the strongest, putting focus on the AUD/USD currency pair. Trend traders will probably still be long of the EUR/USD currency pair after it made a bullish breakout earlier this week. Day traders will remain interested in trading the high volatility in the Yen. There are Yen crosses that have moved by more than 10% in value in barely more than two weeks, which is extraordinary. The British Pound is weak due to the prospect of further rate cuts by the Bank of England and the current wave of communitarian civil unrest.
  3. For the first time, betting markets are placing Democratic candidate Kamala Harris narrowly ahead of former President Trump after a string of polls showed her in the lead. William Hill’s odds suggest Harris has a 52% chance of victory.
  4. Crude Oil rose strongly yesterday on increasing speculation that an Iranian / Hezbollah attack on Israel was imminent, which could lead to Israeli retaliation again Iran’s crude oil export terminal at Kharg.
  5. New Zealand Inflation Expectations data released yesterday came in lower than expected, at 2.03%, suggesting inflationary pressures are dropping there.
  6. There will be a release of US Unemployment Claims data today.

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