Soft or hard landing? Future US data will have a say

A persistent selloff kept the greenback’s price action subdued for another session, a view that was supported by further confirmation of the downward trajectory of US inflation, according to July CPI data.

Here’s what you need to know on Thursday, August 15:

The USD index (DXY) fell to multi-day lows near 102.30 amid persistent disinflationary pressures in the US. A busy US calendar on August 15 will include retail sales, the Philly Fed manufacturing index, the usual weekly initial jobless claims, industrial production, the NAHB housing market index and TIC long-term net flows. In addition, the Fed’s Musalem and Harker are scheduled to speak.

EUR/USD rose further and hit fresh 2024 highs around 1.1050 amid continued greenback weakness. No data on the euro file will be communicated on August 15.

GBP/USD was under pressure as market participants started to pencil in around 50 bps of BoE easing following UK CPI readings. GDP growth rate, trade balance results, construction output, industrial output, manufacturing output and the NIESR monthly GDP monitor are all due on August 15.

USD/JPY alternated gains with losses near the 147.00 region amid the broader consolidation range. The GDP growth rate takes center stage on August 15, backed by weekly foreign bond investments and final industrial production.

AUD/USD surrendered some gains and gave up two consecutive daily advances immediately after hitting highs near 0.6650. Consumer inflation expectations and the release of the jobs report are all scheduled for August 15.

WTI prices slipped below $78.00 a barrel to snap a second straight day of losses on easing geopolitical jitters and demand concerns.

Gold prices fell to a two-day low near $2,440 a troy ounce as investors reassessed the Fed’s rate path. Silver prices retreated to a four-day low near $27.20 an ounce on general weakness in the commodity complex and Chinese concerns.