Market Update – August 29th
The US Dollar (USD) has seen further fluctuations this week, largely influenced by ongoing concerns about the Federal Reserve’s independence and rising tariff uncertainties. Additionally, the potential for interest rate cuts in September has contributed to a generally negative sentiment surrounding the greenback.
Key Highlights for Today
The US Dollar Index (DXY) has dropped to a three-day low, dipping below the crucial 98.00 support level and the 55-day simple moving average. Today’s focus will be on the release of Personal Consumption Expenditures (PCE) data, which is anticipated, alongside U-Mich Consumer Sentiment figures and a final reading of the Advanced Goods Trade Balance.
The EUR/USD pair has struggled to breach the 1.1700 mark, despite showing gains over the past few days. Germany’s economic indicators are in the spotlight, with preliminary inflation statistics, retail sales, and labor market reports set to be published. Furthermore, the European Central Bank (ECB) will release its consumer inflation expectations ahead of a speech by De Guindos.
GBP/USD has seen modest gains, maintaining profits for the third consecutive year. However, a convincing break above 1.3500 is still in view. Coming next are nationwide home price figures from across the Channel.
The USD/JPY pair has fallen to a three-day low, dropping below the 147.00 support level amid a broader weakness in the greenback. Japan’s calendar is busy, with upcoming reports on unemployment, Tokyo inflation, industrial production, retail sales, consumer confidence, housing launches, and construction orders.
AUD/USD has continued its recovery, surpassing the 0.6500 level on Wednesday. In Australia, focus has shifted to housing credit figures and private sector credit data.
On another note, the price of US WTI has decreased to the $63.50 per barrel range, as traders adjust for the end of the US driving season and consider the reopening of Russian oil supplies to Hungary and Slovakia.
Gold prices have surged to a five-week high, rising from $3,400 per troy ounce. Silver has followed suit, reaching levels last seen in late July, exceeding $39.00 per ounce.
