Fed's Warsh: Numbers on price stability are 'more concerning'Univ of Michigan final sentiment index for August 51.7 vs 51.0 estimateFed's Hammack: It's time to act with rate hikes, waiting will create painCanada GDP Q2 annualized 3.3% vs 3.4% estimateFed's Goolsbee: Agrees with Warsh that inflation is Fed's main issue right nowNon-farm payrolls benchmark revisions trimmed employment by 79K jobsMarkets:Gold down $145 to $4455US 10-year yields up 5.4 bps to 4.73%US 2-year yields up 12 bps to...
USD
NZD
Source: Finnhub
The USDJPY has extended higher, breaking above its 100-day moving average at 159.994 and the natural resistance at 160.00. The high price has reached 160.15 as buyers maintain firm control.The move has been supported by hawkish comments from Fed Chair Powell and a sharp rise in U.S. The two-year yield is up nearly 11 basis points at 4.34%, while the 10-year yield is higher by 5.2 basis points at 4.724%.
USD
JPY
Sentiment:
Very Positive
Source: Finnhub
Markets await Federal Reserve Chair Warsh's Jackson Hole speech, US Nonfarm Payrolls benchmark revisions, and sticky inflation data.
USDCAD
Source: Marketaux
The US dollar has pushed broadly higher after Fed Chair Warsh delivered a longer-than-anticipated Jackson Hole address running 3,566 words, with the tone read as more hawkish than markets had positioned for. EUR/USD, GBP/USD, AUD/USD and NZD/USD all came under pressure, while USD/JPY, USD/CHF and USD/CAD extended gains as front-end US yields firmed and rate-cut expectations were trimmed. The speech's emphasis on policy restraint has forced a repricing of the near-term Fed path, reinforcing the dollar's yield advantage into month-end. Technically, dollar pairs are testing key pivot levels: EUR/USD is pressing session lows with sellers defending former swing support, while USD/JPY has cleared prior resistance to trade at fresh highs for the move. Equity indices reacted in kind, with the S&P 500 and Nasdaq Composite trading defensively as higher discount-rate assumptions weighed on valuations. Traders should watch whether dollar strength holds above intraday breakout levels; a sustained close higher would validate a continuation of the hawkish repricing, while failure at resistance risks a quick unwind given stretched month-end positioning.
EURUSD
USDJPY
GBPUSD
USDCHF
USDCAD
AUDUSD
NZDUSD
Sentiment:
Very Positive
Source: Finnhub
European trading delivered a more pensive tone with USD/JPY extending gains as traders positioned ahead of Fed Chair Warsh's Jackson Hole speech, while gold stayed locked in a tight range. Data flow offered little direction: France's final Q2 GDP was revised down to 0.0% q/q from the 0.2% preliminary reading, French August preliminary CPI matched expectations at 2.4% y/y, and Spanish August preliminary CPI came in slightly hot at 4.3% y/y versus 4.2% expected. German unemployment rose by less than forecast in August, offering modest relief to the euro. Interest rate expectations have shifted through the week, though desks flagged that Jackson Hole may deliver no fresh guidance. Month-end fixing flows were seen as mildly supportive of the dollar, adding a technical tailwind to USD pairs. EUR/USD remains rangebound with the soft French GDP capping upside, while USD/JPY buyers continue to lean on the yield differential. Traders should expect subdued liquidity and range-bound conditions to persist until the Fed messaging is digested, with breakout risk skewed toward the dollar.
USDJPY
EURUSD
EURJPY
Sentiment:
Positive
Source: Finnhub
Geopolitical and energy developments are reshaping currency risk premiums, with European natural gas prices hitting record highs and Persian Gulf states fast-tracking billions of dollars in port, pipeline and rail investment to reduce dependence on the Strait of Hormuz. Record gas pricing represents a direct terms-of-trade shock for the eurozone, historically a persistent drag on EUR/USD as import costs widen the region's energy deficit and squeeze industrial margins in Germany and Italy. It simultaneously complicates the ECB's inflation outlook, keeping headline pressures elevated even as growth momentum softens. The Gulf infrastructure pivot signals a durable structural response to chokepoint risk, which over time could dampen the oil-price spikes that typically support commodity currencies such as CAD and NOK while lifting safe-haven demand for USD, CHF and JPY. Traders should monitor EUR/USD for downside continuation should gas prices keep grinding higher, with EUR crosses including EUR/CHF and EUR/JPY vulnerable to risk-off flows. USD/CAD direction remains tethered to crude, where any Hormuz-related supply premium would favour the Canadian dollar.
EURUSD
USDCAD
USDCHF
EURCHF
EURJPY
USDJPY
Sentiment:
Negative
Source: Marketaux
China's National Development and Reform Commission is accelerating approvals for infrastructure and private investment projects, a development that supports AUD/USD and the broader China-proxy complex while capping USD/CNH upside. The push targets faster conversion of announced policy support into actual project starts, with explicit emphasis on computing power, power grid upgrades and telecom integration, confirming sustained state backing for AI and digital infrastructure buildout. Alongside steady service trade momentum in digital and high-value categories, Beijing appears to be leaning on both domestic investment and external demand to underpin second-half growth. For FX traders, front-loaded construction and grid spending typically feeds iron ore, copper and coal demand, a channel that historically lifts AUD/USD and NZD/USD. AUD/USD resistance sits near the 0.6600 handle with support around 0.6480; USD/CNH remains capped below 7.2000. The absence of headline stimulus figures limits the immediate impact, but a follow-through in fixed-asset investment prints would strengthen the case for commodity-currency outperformance versus the US dollar.
AUDUSD
NZDUSD
USDCNH
AUDJPY
Sentiment:
Positive
Source: Finnhub
