Forex Today: Caution prevails ahead of Jackson Hole

What you need to take care of on  Thursday, August 25:

The dollar seesawed between gains and losses, ending the day mixed, but little changed across the FX board. The American currency advanced at the beginning of the day but shed some ground after Wall Street’s opening, as US stocks managed to post modest gains.

The US reported July Durable Goods Orders, which stayed virtually unchanged at $273.5 billion, missing expectations of a 0.6% increase. However, the reading on Nondefense Capital Goods Orders excluding Aircraft increased by 0.4%, beating the 0.3% expected.

Meanwhile, US Treasury yields edged sharply higher. The 10-year note yielded as much as 3.1269%, while the 2-year note yield peaked at 3.393%. The dollar eased during US trading hours despite yields holding at the upper end of their range.

The EUR/USD pair settled around 0.9960, little changed for a second consecutive day. GBP/USD trades just below the 1.1800 threshold. The AUD/USD trades at around 0.6900, down for the day, while USD/CAD trades at 1.2965.

Spot gold stands at around $1,750 a troy ounce while crude oil prices extended their advance, with WTI now trading at around $95 a barrel.

The dollar posted modest gains against its safe-haven rivals. USD/CHF stands at 0.9660 while USD/JPY trades at around 137.20.

The focus now shifts to the  Jackson Hole Symposium. The US Federal Reserve’s annual event will host economists and policymakers from around the globe in which they will discuss global issues. Market players will try to reassess their estimates on potential rate hikes across major economies, alongside the risk of steeper economic downturns.

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