The US dollar found support after headline PCE came in slightly above expectations, confirming that inflationary pressure remains persistent; gold was the most sensitive to the stronger USD, declining 1.3% to the $4,585–$4,590 area; EURUSD reacted considerably less aggressively to the US inflation, declining by 0.2% towards 1.1650–1.1660; Bitcoin also eased, declining by 0.5% and settling around $78,000.
- The stronger reading encouraged a modest repricing of the Fed’s expectations and allowed DXY to return towards the 99 area.
- Attention now turns to the $4,580–$4,600 zone in gold.
- Technically, EURUSD remains within its established structure and the broader range is still firmly intact.
- The $78,000 area remains an important short-term test of demand for Bitcoin, while a return above $80,000 would once again place the recent highs firmly in focus.
Today’s focus
FX snapshot
XAUUSD
Gold suffered the largest decline among the assets we follow, but for now this is a test of buyer conviction.
EURUSD
The euro lost the least among the assets under review — and with stronger US inflation unable to push EURUSD significantly lower, buyers clearly remain in the game.
BTC
Bitcoin has cooled after an impressive rally, but sellers have achieved very little so far.
Market sentiment
The latest US inflation data gave markets a reason to correct, but not enough to trigger a meaningful reversal. Headline PCE for July came in at 3.7% YoY against expectations of 3.6%, while Core PCE remained at 3.3%, in line with forecasts.
