Forex Today: Markets will focus on US tariffs and the Canadian jobs report

The US Dollar (USD) traded with decent gains, reversing part of Wednesday’s retracement, as market participants continued to closely follow any developments from the trade front as well as Trump’s plans to replace Chair Powell.

Here's what to watch on Friday, August 8:

The US Dollar Index (DXY) clocked acceptable gains and regained the 98.40-98.50 band, setting aside part of the prevailing weekly downtrend amid mixed US yields across the curve. Next on tap on the US docket will be the release of the Inflation Rate for the month of July on August 12.

EUR/USD receded modestly soon after hitting new multi-day tops just pips away from the 1.1700 barrier. Next of note in the euro area will be the publication of the ZEW’s Economic Sentiment print for both Germany and the Euroland.

GBP/USD climbed further and surpassed the 1.3400 hurdle to reach eight-day highs. The always relevant UK labour market report is due on August 12.

USD/JPY added to Wednesday’s decline, revisiting two-day lows near 146.70 just to bounce past the 14700 mark afterwards. A busy japanese docket will feature Household Spending figures, the BoJ Summary of Opinions, Bank Lending, the Current Account results, and the Eco Watchers Survey.

AUD/USD extended its recovery north of the 0.6500 level, rising for the third day in a row. The next key event in Oz will be the RBA’s interest rate decision on August 12, seconded by the NBA Business Confidence gauge.

USD/CAD reversed four daily declines in a row, managing to revisit the 1.3750 region. The Canadian labour market report will be in the spotlight.

Crude oil prices hovered around the area above the $64.00 mark per barrel of WTI as traders remained watchful of a potential Trump-Putin meeting in the coming days.

Gold clocked decent gains and advanced to two-week peaks just below the key $3,400 mark per troy ounce. For the fifth day in a row, Silver prices rose, hitting two-week highs close to the $38.50 region per ounce.