Russia Central Bank Reserves $ fell from previous $695.5B to $676.4B

Gold (XAU/USD) continues to consolidate within this week’s established range, trading near $3,380 at the start of the American trading session following mixed US labor market data.

According to a report from the US Department of Labour (DOL) released on Thursday, the number of US citizens submitting new applications for unemployment insurance increased to 226K for the week ending August 2.

United States Unit Labor Costs above expectations (1.5%) in 2Q: Actual (1.6%)

United States Continuing Jobless Claims climbed from previous 1.946M to 1.974M in July 25

United States Initial Jobless Claims 4-week average: 220.75K (August 1) vs previous 221K

United States Initial Jobless Claims above forecasts (221K) in August 1: Actual (226K)

Bank of England (BoE) Governor Andrew Bailey delivers the Monetary Policy Report and responds to questions from the press after deciding to lower the policy rate by 25 basis points at the August meeting.

Mexico Core Inflation registered at 0.31% above expectations (0.3%) in July

Mexico 12-Month Inflation registered at 3.51%, below expectations (3.53%) in July

Mexico Headline Inflation below expectations (0.28%) in July: Actual (0.27%)

Bank of England (BoE) Governor Andrew Bailey delivers the Monetary Policy Report and responds to questions from the press after deciding to lower the policy rate by 25 basis points at the August meeting.

The Pound Sterling (GBP) attracts significant bids against its major peers on Thursday after the Bank of England (BoE) reduces interest rates by 25 basis points (bps) to 4%, with a 5-4 majority.

Bank of England (BoE) Governor Andrew Bailey delivers the Monetary Policy Report and responds to questions from the press after deciding to lower the policy rate by 25 basis points at the August meeting.

Buy the rumour, sell the news for the Pound Sterling, that is rallying across the board following a widely expected rate cut by the Bank of England, but with significant resistance within the monetary policy committee.

The Canadian Dollar (CAD) is marginally higher on the session but is lagging its G-10 commodity peers somewhat, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.

Bank of England (BoE) Governor Andrew Bailey delivers the Monetary Policy Report and responds to questions from the press after deciding to lower the policy rate by 25 basis points at the August meeting.

The US Dollar (USD) is a little softer overall again this morning, reflecting a renewed strengthening in the bearish narrative amid investor concerns over the outlook for the US economy and monetary policy as well as the focus on the risk of political influence on Fed policy making and US data.

The Euro (EUR) has made a little progress on the US Dollar (USD) over the course of the session but has backed off of its earlier highs just under 1.17, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.

The Pound Sterling (GBP) was steady, holding near session highs on the soft USD ahead of the BoE, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.

Gold price (XAU/USD) struggles to break above the key level of $3,400.00 during the European trading session on Thursday. The precious metal hesitates to extend upside even as Federal Reserve (Fed) officials have shown support for interest rate cuts in the remainder of the year.

United Kingdom BoE MPC Vote Rate Hike meets forecasts (0)

United Kingdom BoE MPC Vote Rate Unchanged came in at 4, above forecasts (2)

United Kingdom BoE Interest Rate Decision in line with forecasts (4%)

The EUR/USD pair appreciates for the third consecutive day on Thursday. Risk appetite amid hopes of a peace deal in Ukraine has prevailed over further weak data from Germany, while renewed concerns about a potential economic downturn in the US have been weighing on the US Dollar.

Last week, Mexico once again reaped the benefits of the strong relationship between its president and the US president, resulting in a further 90-day postponement of higher reciprocal tariffs.

US Dollar (USD) is expected to consolidate in a range of 7.1780/7.1980. In the longer run, USD appears to have moved into a 7.1600/7.2240 range trading phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

While US intermediation to end Russia’s war with Ukraine have kept hitting a dead end, there is a noticeable downturn taking hold in the Russian economy for the first time since sanctions were imposed, Commerzbank's FX analyst Tatha Ghose notes.

The US Dollar is reversing previous lows against the Japanese Yen, as safe assets suffer on Thursday, amid a moderate appetite for risk.

The current price movements still appear to be part of a consolidation phase, likely between 146.90 and 148.00. In the longer run, sharp drop in USD has scope to extend, but any decline may not break below 145.80, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.