On Thursday, the US Dollar bounced back from recent lows as risk sentiment in the market weakened. This was supported by a rise in US yields, setting the stage for Fed Chair Powell’s speech at the Jackson Hole Symposium.
Key Points for Friday, August 23:
- The USD Index (DXY) recovered to the 101.60-101.65 range after dropping below 101.00 earlier in the week.
- EUR/USD retreated above 1.1100 as the dollar gained strength. The ECB will release its Consumer Inflation Expectations survey on August 23.
- GBP/USD remained bullish, hitting a new YTD peak near 1.3130. The Consumer Confidence report and a speech by the BoE’s A. Bailey are scheduled for August 23.
- USD/JPY saw a significant rise due to a stronger dollar and higher US yields. BoJ’s K. Ueda will testify before Parliament on August 23.
- AUD/USD faced pressure from the dollar’s rebound, pushing it towards the 0.6700 level. The RBA’s Monthly CPI Indicator is the next major event for Australia on August 28.
- WTI prices surged past $73.00 per barrel on expectations of Fed interest rate cuts, overshadowing concerns about Chinese demand.
- Gold and Silver prices fell below key levels ($2,500 and $29.00 per ounce, respectively) in response to the dollar’s strength and higher US yields.
Analysis:
The shift in market sentiment towards safer assets like the US Dollar has led to fluctuations in major currency pairs and commodities. Investors are closely watching Fed Chair Powell’s upcoming speech for hints on future monetary policy decisions. The outcome of these events could impact global markets and individual financial portfolios. Stay informed and be prepared for potential market volatility.