The USD Index (DXY) took a hit, nearing yearly lows as sellers dominate the market. Investors are anticipating a dovish message from Powell at Jackson Hole, leading to further decline in the Greenback.
Key Points for August 21:
- USD Index (DXY) near yearly lows, with the weekly MBA Mortgage Applications and FOMC Minutes on the horizon.
- EUR/USD hits YTD highs above 1.1100, with a 10-year Bund Auction scheduled.
- GBP/USD climbs to 2024 peaks near 1.3050, awaiting Public Sector Net Borrowing figures.
- USD/JPY drops to two-week lows around 145.30, as Balance of Trade results loom.
- AUD/USD reaches five-week highs around 0.6750, with Westpac’s Leading Index due.
- WTI prices hit two-week lows near $72.50 on ceasefire talks and Chinese demand concerns.
- Gold surges past $2,530 on Fed rate cut hopes, while Silver retreats from $30.00 mark.
Overall, the market is seeing a shift in favor of currencies like the Euro and the Pound, while the Greenback struggles against major counterparts. Investors are closely watching upcoming economic data releases and central bank announcements for further clues on market direction.