Here is what you need to know on Wednesday, August 27:
The action in financial markets remain relatively quiet early Wednesday as investors assess the latest headlines surrounding the escalating feud between United States (US) President Donald Trump and the Federal Reserve. The economic calendar will not offer any high-impact data releases. Later in the American session, the US Treasury will hold a 5-year note auction.
US Dollar Price This week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the Euro.
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).
Fed Governor Lisa Cook will reportedly file a lawsuit challenging her removal by US President Donald Trump. While speaking at a Cabinet meeting on Tuesday, Trump noted that he is prepared to abide by any court decision but indicated he was not concerned about Cook’s challenge. He further noted that he already has somebody in mind as Cook's replacement, adding there will soon be a majority of rate-cut voters within the Fed.
Meanwhile, the data from the US showed on Tuesday that the Conference Board's Consumer Confidence Index eased slightly to 97.4 in August from 98.7 in July. In this period, the Present Situation Index dropped by 1.6 points to 131.2, while the Expectations Index, which measures short-term expectations for income, economic activity, and employment, fell by 1.2 points to 74.8. After losing about 0.2% on Wednesday, the US Dollar (USD) Index stays in positive territory near 98.50 in the European morning on Wednesday.
Bank of Canada (BoC) Governor Tiff Macklem noted late Tuesday that the BoC will not be revisiting its 2% inflation target for the foreseeable future, citing uncertainty around trade and ever-changing tariff policies from the US. USD/CAD fluctuates in a very tight range below 1.3850 after posting marginal losses on Tuesday.
The data published by the Australian Bureau of Statistics (ABS) showed on Wednesday that Australia’s Consumer Price Index (CPI) jumped by 2.8% in the year to July, following a 1.9% increase reported in June. This reading surpassed the market expectation of 2.3%. After rising above 0.6500 during the Asian trading hours, AUD/USD lost its traction and was last seen trading in negative territory at around 0.6480.
GfK Consumer Confidence Index in Germany declined to -23.6 in September from -21.7 in August, missing analysts' estimate of -21.5. In the meantime, the political drama in France escalates after French Prime Minister François Bayrou announced that a no-confidence vote will be held on September 8th. Political parties in France failed to agree on the 2026 budget, which aims to cut government spending by 44 billion Euros to restore fiscal balance. EUR/USD stays on the back foot and declines toward 1.1600 in the European morning on Wednesday.
GBP/USD edges lower toward 1.3450 after posting small gains on Tuesday.
USD/JPY trades in a narrow band below 148.00 in the European session on Wednesday. In the Asian session, July Unemployment Rate and Tokyo CPI data will be featured in the Japanese economic docket.
Gold gathered bullish momentum in the American session on Tuesday and climbed to a two-week high above $3,390. XAU/USD corrects lower in the European morning and trades below $3,380.
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