Market roundup: dollar recovers on yields, pound leads gainers, yen sees mixed trading

The US dollar recovered from recent lows, the British pound led major currencies, while gold held gains and WTI crude consolidated.

Major currency movements

• The US dollar recovered today on rebounding yields, reversing its recent dip following Treasury buybacks.
• The British pound was the strongest currency, supported by UK consumer confidence reaching a two-year high, although headlines suggest the pound's strength is influenced by energy costs rather than inflation itself. FXStreet notes GBP/JPY bulls are targeting 217.00.
• The Japanese yen experienced mixed trading. It initially stabilized after Japan's national CPI for July matched expectations at a 2.0% year-on-year rise for headline and 1.8% for core. However, the yen later fell as firmer US yields boosted the dollar. Earlier, preliminary PMI data indicated Japanese factories saw their strongest growth since February.
• The euro fell below 1.1700 as the US dollar regained strength.

Commodities and market sentiment

• WTI crude oil consolidated around $86.00, with upside potential intact amidst the US-Iran impasse, according to FXStreet. Bessent indicated that the US is unlikely to resume large-scale combat but rather increase economic pressure.
• Gold continued to trade above $4,500, maintaining its surge from yesterday's US Treasury buybacks.
• Our market sentiment gauge (FSI) indicates Greed at 72. The MRS stands at 66, suggesting the market is primed for movement, and the CTS is high at 80. Our strength gauge ranks the British pound as the strongest major, while the Swiss franc was the weakest currency on an intraday basis.

Key events today

• GBP · Retail Sales m/m: SCHEDULED · forecast -0.5% vs previous 1.0%
• EUR · French Flash Manufacturing PMI: SCHEDULED · forecast 50.1 vs previous 50
• EUR · German Flash Manufacturing PMI: SCHEDULED · forecast 52.1 vs previous 52.2