Financial & Forex Market Recap – August 19, 2026

Markets snapped a defensive streak on Wednesday after the U.S. Treasury said it would at least double the size of its long-end bond buyback operations, a surprise move that pulled Treasury yields down, sent the dollar to a three-month low, and lit a broad rally across equities, gold, and bitcoin. The greenback finished as the worst-performing major on the…

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Japan Merchandise Trade Balance Total came in at ¥-634.5B, above expectations (¥-680B) in July

GBP/USD extends its daily rally and trades at its highest level since mid-May above 1.3600. The US Treasury Department decision to double the sice of liquidity support buyback operations for longer-dated nominal coupon securitiez weighs heavily on the US Dollar and helps the pair push higher. Earlier in the day, the data from the UK showed that annual Consumer…

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New Zealand Dollar rallies as Treasury buyback drags US yields

The New Zealand Dollar (NZD) rallies against the US Dollar (USD), pushing north of the 0.5930 mark. The move is driven by broad weakness in the Greenback rather than anything out of New Zealand. The trigger was the United States (US) Treasury Department. It said it will at least double its buyback operations for longer-dated coupon securities in the…

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US Dollar Struggles as Bond Yields Normalize. Forecast as of 19.08.2026

2026.08.19 2026.08.19 US Dollar Struggles as Bond Yields Normalize. Forecast as of 19.08.2026 Dmitri Demidenkohttps://www.litefinance.org/blog/authors/dmitri-demidenko/ It might seem that the S&P 500’s decline and rising oil prices should have given bears a clear advantage in the EUR/USD. Instead, the pair rose as interest rates in the bond market continued to normalize. Let’s examine the factors behind this move and develop…

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UK Inflation Rises to 2.9% in July 2026

UK inflation climbed to 2.9% year-on-year in July 2026, up from a 15-month low of 2.6% in June, exactly matching economist forecasts. The Office for National Statistics released the data this morning, and the driver is unmistakable: household energy bills. Ofgem’s quarterly price cap rose 13% in July, pushing gas prices up 14.7% in a single month. Another energy…

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Why Gold can reconquer its safe-haven status

XAU/USD Current Price: $4,488 The US Dollar came under pressure after the US Treasury Department announcement. XAU/USD trades with a firmer tone on Wednesday, aiming to extend gains beyond $4,500. The US Dollar (USD) is under strong selling pressure on Wednesday, resulting in Gold approaching the $4,500 mark for the first time in over two months. The Greenback came…

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