The USD Index (DXY) plummeted to multi-month lows near 101.80 as risk appetite soared, with focus on upcoming FOMC Minutes and Powell’s speech at Jackson Hole. Fed speakers Bostic and Barr are set to speak today, along with API’s US crude oil inventories report.
EUR/USD surged to new 2024 highs near 1.1100 on the back of a weaker Dollar. Eurozone’s final Inflation Rate and Germany’s Producer Prices are on tap for today.
GBP/USD continued its recovery towards 1.3000, with Public Sector Net Borrowing figures due tomorrow in the UK.
USD/JPY dropped to multi-day lows near 145.00 as Dollar weakness and mixed yields weighed. Japan’s Balance of Trade data is awaited on August 21.
AUD/USD climbed to five-week highs around 0.6730, with RBA Minutes scheduled for release today.
WTI prices dipped to two-week lows near $73.50 on concerns over China demand and hopes for Middle East ceasefire talks.
Gold traded near all-time highs around $2,500 per ounce, while Silver hit five-week tops above $29.00 per ounce.
Analysis:
The current market conditions are favoring riskier assets, leading to a decline in the US Dollar. Traders are closely watching upcoming speeches and data releases for further insights into the economic landscape. Investors should pay attention to currency movements, commodity prices, and geopolitical developments to make informed decisions about their investments and financial strategies.