The foreign exchange market remains remarkably calm. Trading ranges are narrow, with equities mostly trending higher. Gold, after a bearish dip yesterday, has rebounded slightly and is trading within a $2446-$2460 range. September WTI crude oil, which declined after peaking above $80 earlier this week, is consolidating below $77.60 today without further selling pressure.

Asia Pacific Markets

Japan's economy outperformed expectations in Q2, expanding by 0.8% quarter-over-quarter compared to a 0.6% forecast, translating to a 3.1% annualized growth rate. The dollar, which bottomed near JPY141.70 on August 5, has remained within a JPY144.50-JPY148.00 range over the past five sessions and is trading in a narrow JPY147.00-JPY147.60 range today.
The Australian dollar hit a three-week high near $0.6645 yesterday but fell to session lows just below $0.6600. It briefly dipped to a three-day low around $0.6570 before rebounding on strong employment data.

European Markets

The UK continues its data-heavy week with the release of Q2 GDP figures, showing a 0.6% expansion following a 0.7% growth in Q1, and contractions in Q3 and Q4 of 2023. Sterling consolidated after a 0.70% surge on Tuesday, stalling near the 50% retracement of its decline from the July 17 high around $1.2855. It held support at $1.2820 and is trading near $1.2860 in late European morning activity.
The euro reached a peak of nearly $1.1045 yesterday, its highest since early January, but has since pulled back to around $1.1010.

American Markets

The US July CPI was in line with expectations, with headline inflation falling below 3.0% for the first time since April 2021, and the core rate at 3.2%, also the lowest since April 2021. As a result, market impact was minimal. Attention now shifts to import/export price indices and the real sector, where more signs of economic slowing are anticipated.
The US dollar briefly traded below CAD1.37 yesterday for the first time since July 18 but recovered to close higher. Today's gains have been capped near CAD1.3725.