The GBPUSD, USDJPY, and USDCHF started the final trading day of the week in a neutral position, hovering between their 100-hour and 200-hour moving averages. This technical standoff is likely to persist until key economic reports provide direction.

As the day unfolds, traders are eyeing potential triggers for movement, including German retail sales, GDP, and the EU’s CPI Flash. Later, US Core PCE data and the University of Michigan consumer sentiment report could influence USD momentum. The Core PCE, a key inflation gauge for the Fed, along with the upcoming US jobs report, will be crucial in shaping expectations for a possible 50 basis point rate cut at the September Fed meeting.

However, with the week ending and the US and Canada approaching the Labor Day holiday, market activity could slow down as the day progresses.