The US Dollar Index (DXY) surged to two-week highs as risk assets faltered amidst renewed recession fears, pushing the index towards the key 102.00 level. Despite lower US yields, the Greenback remained resilient, causing EUR/USD and GBP/USD to drop to multi-day lows.
Meanwhile, the Japanese yen staged a strong comeback, pulling USD/JPY towards the 145.00 zone after four consecutive days of gains. AUD/USD also tumbled over 1% as Chinese demand concerns and a stronger US Dollar weighed on the pair.
In the commodity markets, WTI prices dipped near $70.00 per barrel on news of a potential deal in Libya, while Gold and Silver prices declined as the US Dollar regained strength, with Gold breaking below $2,500 per ounce and Silver falling to three-week lows below $28.00 per ounce.
Key Economic Events for September 4:
- Weekly Mortgage Applications by MBA
- Balance of Trade results
- Factory Orders data
- Fed Beige Book release
- Final HCOB Services PMI in Germany and the Eurozone
- Final S&P Global Services PMI
- Final Jibun Bank Services PMI
- Ai Group Industry Index
- Final Judo Bank Services PMI
Overall, the strengthening US Dollar and weakening risk assets signal a shift in market sentiment, with investors turning towards safe-haven currencies and assets. Stay tuned for more updates on market trends and economic data releases to make informed investment decisions.