The market situation is starting to change as the trade approaching the end of this week witnessed the US dollar strengthening again.
The focus is on the US producer inflation data report which recorded the best increase since 2022.
The producer price index (PPI) reading for July rose to 0.9%, beating the forecast of 0.2%, signaling an increase in prices for the next month.
With the positive data reading, the US dollar managed to recover from 2 consecutive days of losses, but analysts see that the situation is likely to be temporary.
In addition, the question arises whether the Federal Reserve (Fed) will be able to implement an aggressive interest rate cut at this September meeting.
US Commerce Secretary Scott Bessent in a previous interview signaled that a 50 basis point interest rate cut is likely to begin in September.
For the next indicator, US retail sales data will be focused on in the New York session tonight along with a consumer confidence survey.
If the report comes with strong numbers, the US dollar will continue to strengthen in the last trading session.
Other major currencies are again under pressure as the recovery performance shown earlier is starting to falter.
