The US dollar edged moderately higher in the 99.81–99.85 range as global forex markets remained locked in a tight consolidation phase ahead of the release of US inflation data (CPI). Market sentiment today (August 11–12, 2026) was dominated by geopolitical concerns in the Middle East, uncertainty surrounding US-Iran negotiations, and hawkish remarks from Federal Reserve officials.
Here is the latest recap of developments in the global forex market during Tuesday’s trading session.
US Dollar Recovers From Lows as Markets Await CPI Catalyst
The US Dollar Index (DXY), which measures the strength of the greenback against six major currencies, extended its recovery toward the 99.85 area after plunging to a two-month low of 99.41 at the end of last week.
The rebound was driven by fading expectations of an imminent US-Iran peace agreement, which once again fueled demand for safe-haven assets.
In addition to geopolitical factors, remarks from Cleveland Fed President Beth Hammack provided further support for the dollar bulls. Hammack said the central bank may still need to raise interest rates further to contain persistent inflationary pressures stemming from surging energy commodity prices.
According to data cited by Trading Economics, investors are now fully focused on the release of the US July Consumer Price Index (CPI) data to assess whether the Federal Reserve will take a more aggressive stance at its upcoming September meeting.
Yen Intervention Effect Fades as USD/JPY Edges Higher Again
In Asian trading, the USD/JPY pair was hovering around 159.19. The yen remained a major focus following confirmation of a coordinated intervention involving Japan’s Ministry of Finance and the US Treasury Department.
According to a global commodities market review, US Treasury Secretary Scott Bessent was reportedly using the Exchange Stabilization Fund to purchase yen with euros, in an effort to prevent Japan from aggressively selling US Treasuries to support its currency.
Although the intervention initially helped prevent the yen from falling to a 40-year low, its protective effect has begun to fade. Rising long-term US Treasury yields and mounting domestic fiscal pressures in Japan have forced the yen to surrender some of its gains against the US dollar.
Euro Flat, Australian Dollar Gains After RBA Takes Firm Stance
Trading across other major currencies was mixed but remained confined within relatively narrow ranges.
EUR/USD: The euro was largely flat around $1.1542. Gains in the single currency were capped as market participants also assessed the impact of surging natural gas prices in Europe, which could weigh on regional economic growth even as the European Central Bank (ECB) is expected to maintain a tight monetary policy stance.
AUD/USD: The Australian dollar was among the strongest-performing major currencies, rising 0.18% to $0.7065. A Reuters economic report said the Reserve Bank of Australia (RBA) decided to keep its benchmark interest rate at 4.35%. However, the RBA surprised markets with a firm warning that it was prepared to raise rates again to contain energy-driven inflationary pressures.
GBP/USD: Sterling remained relatively firm near the 1.3500 area, supported by short-term bullish technical momentum amid a limited correction in the US dollar during the previous session.
Commodities: Gold Holds Near Record Levels as Silver Takes Off
Continued global economic uncertainty provided strong support for precious metals.
Gold (XAU/USD) briefly touched a two-month high of US$4,435 per troy ounce during the Asian session before undergoing moderate profit-taking, with prices moving within the US$4,400–US$4,500 range.
Daily analysis indicates that gold prices remain highly sensitive to the Federal Reserve’s interest-rate outlook and volatility in Brent crude oil prices.
Meanwhile, silver (XAG/USD) posted a significant rally after breaking above a key technical indicator, the 200-day exponential moving average (EMA), signaling a strong acceleration in its bullish trend.
