How did the U.S. dollar perform and what factors influenced its movement on Thursday, including the impact of July inflation data (CPI and PPI) on September Fed rate hike odds (which fell to ~40% from 54%), the dollar's weekly gain of 0.4%, the euro's level near $1.1537 supported

Major currency pairs

• Euro: The euro traded near $1.1534–1.1537, supported by expectations that the European Central Bank will raise rates next month . The ECB’s hawkish bias helped EUR/USD hold above $1.1500 even as the dollar steadied .
• British pound: Sterling was near $1.3487–1.3494 on Thursday, after UK GDP for Q2 2026 grew 0.4% quarter-on-quarter, beating expectations . However, weak industrial production data limited further gains .
• Japanese yen: The yen weakened to around 159.3 per dollar, having given back roughly half of the gains from the late-July joint U.S.–Japan intervention that followed a 40-year high near 164 . The slide toward 160 has raised concerns about further official action .

Other notable movers and crosscurrents

• The Norwegian crown weakened after Norges Bank left rates unchanged . The Australian dollar and the crown have been the year’s best G10 performers against the greenback, each up about 5.6% (a figure confirmed by the user’s framing, though not independently verified in the search results).
• The search results did not include direct confirmation of safe-haven demand from U.S.–Iran tensions over the Strait of Hormuz, President Trump’s assertions, or Fed Chair Kevin Warsh’s specific preferences on inflation metrics. These factors may have been in the background but were not the dominant price drivers in Thursday’s coverage.
• Markets are now looking ahead to the August 26 core PCE release for further clarity on the rate path .