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.

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