Market Brief: August 26, 2026

Today's market activity is shaped by a mix of economic data releases and geopolitical developments. Key economic indicators from the United States are on the horizon, while currency and commodity markets react to ongoing global events.

What's on the calendar

Investors are keenly awaiting the release of the Core Personal Consumption Expenditures (PCE) Price Index and preliminary GDP figures from the United States, both scheduled for later today. The Core PCE Price Index, a critical measure of inflation, is expected to show a 0.2% increase from the previous month. Meanwhile, the preliminary GDP figures are forecasted to remain steady at a 1.5% growth rate, matching the previous quarter's performance. These data points are likely to influence market sentiment and trading strategies.

What's moving

The Canadian Dollar has reversed its earlier gains against the US Dollar, pressured by falling oil prices and renewed trade tensions between Canada and the United States. Oil prices have dropped below $90 per barrel as diplomatic talks involving Iran, Oman, and Pakistan progress, easing concerns over the Strait of Hormuz, a crucial energy supply route.

In the currency markets, the Euro is trading lower against the Japanese Yen, influenced by expectations of an interest rate increase by the Bank of Japan. The Euro also faces pressure against the US Dollar, with the EUR/USD pair trading near 1.1665 as the US Dollar strengthens ahead of the PCE inflation data release.

The Australian Dollar is performing well, buoyed by strong inflation data from Australia, which has increased expectations of a rate hike by the Reserve Bank of Australia.

Bottom line

Today's market dynamics are driven by anticipation of key US economic data and geopolitical developments affecting oil prices and currency movements. Traders are closely monitoring these factors to gauge their potential impact on market trends.

This brief is a snapshot of public commentary at the time of writing — not financial advice.