The US Dollar (USD) continued its positive trajectory at the beginning of the week, gaining ground amid ongoing discussions regarding trade policies from the White House, speculation about potential Federal Reserve cuts, and questions surrounding who will succeed Jerome Powell. Meanwhile, the focus is shifting to the Reserve Bank of India (RBI), which is expected to keep the benchmark rate steady at 5.50% this Wednesday.
This is what you’ll see on Wednesday, August 6th:
The US Dollar Index (DXY) climbed to a two-day peak just above the significant 99.00 level, bolstered by an encouraging rise in US yields across the board. The standard weekly MBA mortgage application is backed by the EIA’s report on US crude oil inventories. Additionally, Fed officials Collins, Cook, and Daly are expected to speak.
EUR/USD remained cautious for the second consecutive day on Tuesday, falling back to the 1.1530-1.1520 range. German factory orders have emerged alongside retail sales and HCOB Construction PMI for both Germany and the Eurozone.
GBP/USD took a small step upward on Tuesday, returning to the 1.3300 zone as investors begin to focus on future Bank of England meetings. S&P Global’s Construction PMI will be the only noteworthy release from across the channel.
USD/JPY managed to gain some momentum, partially reversing two days of declines, and is now nearing the crucial 148.00 mark on Tuesday. The primary cash rate is closely related to developments in Japan.
The AUD/USD traded decisively below the 0.6500 level, continuing the trend from Monday. The AI Group Industry Index is next on the Australian economic calendar.
WTI prices have dropped for the fourth straight day on Tuesday, hitting recent lows and testing the $65.00 per barrel level as investors reacted to OPEC+’s recent decision to increase oil production.
The gold price seems to be facing some resistance around $3,380 per troy ounce, experiencing mild downward pressure after three days of gains. Meanwhile, silver prices continued their recovery, testing the $37.50 per ounce mark for the third consecutive day.
