The US Dollar Index (DXY) continued its downward trend for the third consecutive day as investor sentiment remained positive in the risk-linked complex. All eyes are now on the upcoming release of crucial US inflation figures on Wednesday, which will likely drive market movements.
Key Points for August 14:
- The USD Index broke below the 103.00 support level due to lower yields and inflation concerns.
- EUR/USD reached multi-day highs around 1.0980 supported by improved risk sentiment.
- GBP/USD surged past the 1.2800 barrier, with a focus on the upcoming UK Inflation Rate.
- USD/JPY showed mixed performance, struggling to break above the 148.00 level.
- AUD/USD surpassed the 0.6600 mark, hitting three-week highs with upcoming Australian economic data releases.
- WTI prices failed to hold above $80.00 per barrel, facing selling pressure and dropping back below $79.00.
- Gold prices approached $2,480 per ounce before retracing, while Silver saw a decline despite briefly crossing $28.00 per ounce.
Analysis and Impact:
The current market environment is driven by optimism in riskier assets, leading to a weaker US Dollar. Investors are closely watching the US inflation figures, which can have a significant impact on market movements and currency pairs like EUR/USD and GBP/USD. Additionally, upcoming data releases in Japan and Australia will provide further insights into the global economic outlook.
Traders should keep a close eye on key levels in major currency pairs and commodity prices, as any surprises in the upcoming economic data can result in increased volatility and trading opportunities. It is essential to stay informed and adapt to changing market conditions to make informed investment decisions.