Forex Today: US Dollar sinks on Treasury buyback ahead of data-heavy Thursday
Here is what you need to know on Thursday, August 20:
The US Dollar Index (DXY) sold off broadly on Wednesday, sinking below the 99.00s region and holding well under 100.00. The slide followed the United States (US) Treasury's plan to at least double the size of its liquidity support buyback operations for longer-dated coupon securities, effective September 9.
The July Federal Open Market Committee (FOMC) Minutes did little to arrest the decline. The record showed policymakers still regard inflation as elevated and confirmed three officials voted for a rate hike. But traders treated the document as backward-looking, given the softer inflation and weak jobs data released since the meeting.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Australian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.86% | -0.55% | -0.85% | -0.62% | -0.52% | -1.02% | -1.80% | |
| EUR | 0.86% | 0.30% | -0.02% | 0.25% | 0.34% | -0.17% | -0.95% | |
| GBP | 0.55% | -0.30% | -0.28% | -0.05% | 0.06% | -0.47% | -1.26% | |
| JPY | 0.85% | 0.02% | 0.28% | 0.24% | 0.32% | -0.16% | -0.98% | |
| CAD | 0.62% | -0.25% | 0.05% | -0.24% | 0.08% | -0.42% | -1.21% | |
| AUD | 0.52% | -0.34% | -0.06% | -0.32% | -0.08% | -0.51% | -1.28% | |
| NZD | 1.02% | 0.17% | 0.47% | 0.16% | 0.42% | 0.51% | -0.81% | |
| CHF | 1.80% | 0.95% | 1.26% | 0.98% | 1.21% | 1.28% | 0.81% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
EUR/USD extended its advance beyond 1.1675, reaching its highest level since late May as the Dollar broadly retreated.
GBP/USD climbed past the 1.3600 mark to a three-month peak, with firm United Kingdom (UK) inflation adding to the pressure on the Greenback.
USD/JPY faded toward the 158.00 region as US yields fell and the Dollar lost ground.
AUD/USD pushed up toward the mid-0.7100s, holding its gains ahead of Thursday's Australian employment report.
Gold soared toward $4,500 per troy ounce with Silver also sharply higher, both lifted by tumbling yields.
West Texas Intermediate (WTI) Oil held steady near $84.00 per barrel.
The People's Bank of China (PBoC) announces its interest rate decision, with no change expected. The standout release is Australia's July employment report, where analysts look for a modest 15K rise in jobs and the Unemployment Rate to hold at 4.4%, a key input for the Reserve Bank of Australia (RBA). Germany publishes its Producer Price Index (PPI) for July, followed by the Bundesbank monthly report.
In the US session, the focus falls on the weekly Initial Jobless Claims and the Philadelphia Fed Manufacturing Survey for August, which is expected to cool sharply from the prior reading. The Fed's Alberto Musalem also speaks, offering a fresh read on the policy debate after the minutes.
Late in the day, the UK releases GfK Consumer Confidence for August before attention turns back to Japan's inflation figures and the Asian open.