Author name: PaymentEarth

Daily Market Report 08/24/2026 EUR/USD ranged in the mid to high 1.16s overnight. The Euro (EUR) nurses minor losses against the US Dollar (USD) on Monday but holds most of the gains taken last week. The EUR/USD pair trades above 1.1650 during the European morning session with markets moderately reluctant to take risks ahead of the announcement of a new set of sanctions that might increase tensions between the US and Iran. Strategists highlight that “USD debasement has re-emerged as a market theme” after the US Treasury unexpectedly expanded its long-end buyback program, a move they say signals “discomfort with the recent rise in long-dated yields.” The “resulting unwind of US steepened positions has likely reinforced other debasement trades, including a weaker USD, a rebound in gold and higher US inflation breakeven”. The British Pound (GBP) holds mild gains for the fourth consecutive day against the US Dollar (USD) on a calm Monday session, as ongoing concerns about the US Treasury’s bond buyback plans keep US Dollar bulls subdued. The GBP/USD pair is trading at the midrange of the 1.3600s in the early London Trading session, just below six-month highs, at 1.3675. UK data released on Friday was mixed, as retail consumption increased below expectations in July, while August’s preliminary services and manufacturing activity data beat expectations, providing some support to the Pound. The USD/JPY pair rallies over 75 pips following an intraday slide to mid-158.00s and climbs to a fresh daily high during the first half of the European session on Monday. Spot prices currently trade around 159.25-159.30, up nearly 0.25% for the day, and draw support from a broadly firmer US Dollar (USD). Source: FX Street

Daily Market Report 08/21/2026 EUR/USD ranged in the high 1.16s to low 1.17s overnight. The Euro (EUR) is trading a few pips below 1.1700 against a depressed US Dollar (USD) on Friday, on track for a more than 1% weekly rally, and with the three-month high of 1.1710 at a short distance. Solid Eurozone business activity figures have improved confidence in the common currency, while the Greenback remains on its back foot since the US Treasury announced a plan to boost buybacks of long-term Treasuries on Wednesday. The US Dollar remains on the defensive, following the US Treasury’s plan to boost buybacks of long-term Government Bonds, aimed at stemming a sharp rally in yields. The yield for the 30-year Treasury note hit fresh 19-year highs at 5.33% earlier this week, as news that national debt had topped USD 40 trillion prompted bondholders to demand higher compensation. Strategists argue that “the Treasury is trying to manage longer-term rates—which have been rising because markets are questioning the Fed’s commitment to inflation fighting and investors are worried about the sustainability of US fiscal policy.” In their view, if higher yields are unable to “fully take the strain from those concerns, the USD will have to,” leaving the Dollar vulnerable as investors reassess both the policy outlook and the fiscal backdrop. The British Pound (GBP) rallied to fresh six-month highs against the US Dollar (USD) on Friday, boosted by stronger-than-expected UK business activity data, while the US Dollar remains depressed following the US Treasury’s plan to boost bond buybacks. The GBP/USD pair has breached the 1.3660 level for the first time since February and is trading just above 1.3670 at the time of writing.  National Statistics figures revealed that retail consumption contracted 0.5% in the UK in July, meeting the market’s expectations and following a  0.7% increase in June. Year-over-year, sales increased at a 1.6% pace, down from 3.8% in June and below the consensus 2.2%. Beyond that, Public Sector Net Borrowing increased by GBP 1.8 billion in July, below June’s GBP12.78 bullion but exceeding the market expectations of GBP0.3 billion. The USD/JPY pair struggles to capitalize on the previous day’s recovery from the 158.00 mark, or a one-and-a-half-week low, and meets with fresh supply on Friday. Spot prices stick to modest intraday losses around the 158.60 area through the first half of the European session and remain on track to end in the red for the first time in three weeks. The Japanese Yen (JPY) gets a minor lift after domestic data showed that core consumer inflation accelerated during July, bolstering the case for an interest rate hike by the Bank of Japan (BoJ). In fact, the core Consumer Price Index (CPI), excluding fresh food items, rose 1.8% YoY in July, up from a 1.6% advance in the previous month and marking the fastest pace since January. Adding to this, an index that strips out both volatile fresh food and fuel prices, which is closely watched by the BoJ as a clearer ‌gauge of underlying inflation, rose 1.9% from a year earlier after a 1.7% gain in June. This, along with the prevailing US Dollar (USD) selling bias, exerts some downward pressure on the USD/JPY pair. Source: FX Street

Daily Market Report 08/20/2026 EUR/USD ranged in the high 1.16s to low 1.17s overnight. The Euro (EUR) extends gains against an ailing US Dollar (USD) on Thursday, as the US Treasury’s plan to boost buybacks of long-term Government Bonds sent the Greenback tumbling across the board. The EUR/USD pair trades right above 1.1700 at the time of writing after surging about 1.13% from Wednesday’s lows.  The US Treasury Department announced on Wednesday its decision to double the size of liquidity support buyback operations for longer-dated securities, to at least 4 billion per operation, from the current maximum size of $2 billion from September 9 on. This plan is aimed at easing yields on long-term Government Bonds, under pressure this week, after data from the Treasury Department revealed that national debt rose above $40 trillion, prompting investors to demand higher compensation for holding US debt. GBP/USD extends its gains for the second successive day, trading around 1.3630 during the European hours on Thursday. The pair appreciates as the US Dollar (USD) faces challenges, driven by the decision of the US Treasury Department to stabilize domestic bond markets. The upside of the GBP/USD pair could be restrained as the Greenback may receive safe-haven support from geopolitical friction in the Strait of Hormuz, where tensions between the US and Iran have intensified. While President Donald Trump noted that oil transit continues and expressed openness to negotiations with Tehran, elevated risk aversion continues to favor the US currency. USD/JPY appreciates after registering modest losses in the previous day, trading around 158.50 during the Asian hours on Thursday. The currency pair gains ground as the Japanese Yen (JPY) struggles under the weight of wide interest rate differentials, mounting fiscal concerns, and elevated costs for energy and imported goods. Japan’s Merchandise Trade Balance Total showed the trade deficit widened sharply to JPY 634.5 billion in July from JPY 409.9 billion the prior month. Although the figure came in below the market forecast of a JPY 680.0 billion deficit, it marks the third consecutive month in the red and the largest deficit recorded since January, driven by import growth outstripping export gains. Source: FX Street

Daily Market Report 08/19/2026 EUR/USD ranged in the high 1.15s to low 1.16s overnight. EUR/USD rises after registering minor losses in the previous day, trading around 1.1600 during the European hours on Wednesday. The pair holds ground as the Euro (EUR) remains stronger following the release of Eurozone Harmonized Index of Consumer Prices (HICP) data for July. Eurozone annual inflation rose to 2.9% in July from 2.8% in June, matching preliminary estimates and staying above the European Central Bank’s 2.0% target. Core inflation, excluding food and energy, also ticked up to 2.5% from 2.4%. Strategists at BNY Mellon caution that the adjustment underway in the Dollar could unfold faster than many expect, noting that “that timeline could prove conservative.” They point out that “the Dollar is already weakening in nominal terms, introducing some pass-through inflation risk, even if the US is less exposed to this channel than more export-dependent economies.” This prospective external impulse, BNY adds, “comes on top of uniquely strong domestic inflation pressures from capital expenditure and demand,” reinforcing their view that the current Dollar move is occurring against a backdrop of already elevated underlying price dynamics. The British Pound (GBP) is up 0.2% to near 1.3557 against the US Dollar (USD) during the European trading session on Wednesday. The GBP/USD pair trades higher as the US Dollar faces selling pressure, with traders scaling back Federal Reserve (Fed) interest rate hike bets due to weak United States (US) economic data for August. Analysts at ING highlight that “for today, the focus will be on tonight’s release of the FOMC minutes for the July meeting,” noting that the earlier decision saw “the vote… 9-3 for unchanged rates and the event proved a dovish one for the short end of the US curve and the Dollar, while the long end sold off.” ING argues that “the suspicion is that the 12-member FOMC is less hawkish than the participants whose projections delivered forecasts of a 9:9 split for a hike in the June set of Dot Plots.” As a result, while they concede “there may be a few hawkish references in tonight’s minutes that could nudge the Dollar and short-dated rates a little firmer,” they stress that “we do not see the minutes as a game changer.” Ahead of the FOMC minutes, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.26% lower to near 99.38, close to its two-month low of 99.29 posted on Monday. The Japanese Yen (JPY) recovers strongly against its major currency peers on Wednesday after underperforming in the past few days. The US Dollar (USD) is down 0.25% against the Japanese currency at around 159.20 during the early European trading session. Financial markets, remaining confident that the Bank of Japan (BoJ) will raise interest rates at its September meeting, have staged a strong comeback for the Asia-Pacific currency. Firm BoJ interest rate hike expectations remain intact even as Japan’s Q2 flash Gross Domestic Product (GDP) data has come in weaker than projected. Source: FX Street

Daily Market Report 08/18/2026 EUR/USD ranged in the mid to high 1.15s overnight. The EUR/USD pair depreciates as the US Dollar (USD) holds ground on safe-haven flows amid escalating geopolitical tensions between the US and Iran. US President Donald Trump stated he has no interest in renewing the expiring agreement with Iran, pointing to the active naval blockade of Iranian ports as leverage and reiterating his intention to declare the vital waterway as total American territory. However, the Greenback may struggle as hawkish expectations surrounding the Federal Reserve fade. A recent, unexpected decline in July US Nonfarm Payrolls alongside modest consumer price inflation figures has weakened the case for imminent monetary tightening. Consequently, CME FedWatch Tool data shows the probability of a Fed rate hike at the next meeting has fallen to 36.6%, down from 48.4% a week ago. Analysts note that the US Dollar has “rebounded modestly today with the focus very much on the deterioration in bond market sentiment.” They highlight that “UST bond yields have moved further sharply higher and the 30-year yield is now 25bps higher since the FOMC meeting on 29th July,” with the 30-year “at 5.32% this morning,” marking “the highest since 2007.” MUFG/BTMU add that “curve steepening is showing clear momentum in the US and elsewhere,” underscoring the shift in global duration dynamics that is underpinning the Dollar’s latest move. The British Pound (GBP) is down 0.1% to near 1.3530 against the US Dollar (USD) during the European trading session on Tuesday. The British currency comes under pressure after the release of the United Kingdom (UK) employment data for three months ending June. Analysts characterize the latest UK labor figures as offering “nothing particularly earth-shattering,” but still reinforcing a picture of a cooling jobs market. They note that “payrolled employment is down a touch,” while cautioning that this headline masks “big differences between government (which is still actively hiring), consumer services (where job numbers are consistently falling and the pace of decline is getting worse) and the remaining private sector, which is flatlining.” Going forward, investors will focus on the UK Consumer Price Index (CPI) data for July, which will be released on Wednesday. Investors will pay close attention to UK inflation to get fresh cues regarding the BoE’s monetary policy outlook. The Japanese Yen (JPY) underperforms its major currency peers on Tuesday, with USD/JPY trading 0.16% higher at around 159.70 during the European trading session. The Japanese currency is under pressure as financial markets doubt the Bank of Japan (BoJ) to hold its hawkish policy stance amid growing economic concerns. Economists note that Japan’s latest GDP release undershot expectations, with “headline growth missed consensus, with consumption and capex—the two drivers we had expected to support growth—both disappointing.” They add that the inflation backdrop offers some support to tightening prospects, as “the higher GDP deflator should support near-term BoJ hike expectations,” but caution that “if weakness in consumption and capex continues, it would raise concerns over a faster and higher hiking path.” Source: FX Street