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Gold prices were smashed on the night of the election, similar to what showed in 2016 when the US Dollar posed a stark turn-around on news that Donald Trump would prevail.

US dollar is in sharp focus as investors' attention turn to FOMC policy decision next and NFP data on Friday, after the ISM Manufacturing PMI and JOLTS jobs opening data disappointed expectations.

With the odds of a Fed cut arriving this year now in jeopardy, it is now over to the BOE, ECB or BOC to take the title as ‘first to begin easing’. And that brings Canadian CPI data into focus today for CAD traders.

The recent underperformance of the Dow Jones has not come without warning, as asset managers have been reducing their net-long exposure for several weeks now. Yet the Nasdaq remains above 18k, which means it may be better suited for bulls should sentiment improve and leave the Dow Jones for bears to consider fading into, should prices rebound.

The Bank of England seems an outlier at this point as they remain one of the more hawkish Central Banks and GBP/USD is driving to a fresh three-month high after the FOMC and BOE rate decisions.

The EUR/USD faces a key test in the next week and a half. We will have lots of key data and rate decisions from both the Federal Reserve and European Central Bank to come during this period. Ahead of these big events, the EUR/USD was down for the second consecutive week, eating into the impressive gains made last month. But will it bottom around the 1.0700-1.0750 key support area?

Welcome to another edition of Forex Friday, a weekly report in which we highlight selected currency themes. In this week's edition, we will discuss the US dollar, EUR/USD and NZD/USD ahead of next week's key macro events.

The US Dollar has continued an aggressive bullish breakout as yields have flown higher since last week’s FOMC. The focus shifts to US data with a big morning on the calendar for Friday.

The US Dollar has only done this six times in the past decade, and each instance was wrapped up in a strong trending environment. After DXY spent the first six months of this year consolidating, is a bigger picture trend afoot after the USD breakout from the falling wedge?

The USD posted its sixth consecutive weekly gain, which hasn’t happened since May of 2022 when the USD was on its way to punching up to another fresh bullish run that lasted until September. Next week brings high impact data out of the US and Dollar bulls have shown an impressive support response thus far.

Yesterday’s NVDA report was a home run by most accounts. The market reaction, however, has so far been a strike out. But not just for NVDA as the Nasdaq 100 is working on a bearish engulfing formation and the USD is trading at a fresh two-month-high. This is quite the series of events to mark the start of this year’s Jackson Hole Economic Symposium.

USD/CAD has been one of the stronger major pairs during the recent theme of US Dollar strength and after setting another fresh two-month-high this morning, the pair appears to be setting the stage for a pullback. Bulls have fiercely defended 1.3500 since the break – can they continue to hold the big figure?

The US Dollar has been holding on to a strong bullish move and this week’s big event is the speech from FOMC Chair Jerome Powell on Friday morning. US rates are continuing to run as worries build around China and yield curve normalization may not be a bullish factor for stocks as we’ve seen so far in August.

The US Dollar spent the first half of the year consolidating into a falling wedge pattern, and a breakdown in July that began to open the door for bears has been quickly slammed shut as bulls have returned in droves to drive the USD to a fresh two-month high.

EUR/USD is bouncing from a key spot of support, but EUR/JPY is still driving to fresh highs while making a run at the psychological level of 160, which hasn’t been traded at since before the Financial Collapse in 2008.

It was another strong week for the US Dollar and this leads into the Jackson Hole Economic Symposium. GBP/USD retains attraction for USD bears while USD/CAD remains attractive for USD bulls. Question marks remain around EUR/USD as the pair held a key spot of support during Friday trade.

Gold prices are trading at a fresh five-month low today as prices have broken through the $1,900/oz mark. US Dollar bulls are running trends across a number of markets, but might they relent for long enough to allow gold prices to put in a pull back?