Market Drivers; US Sesssion

Powell’s Speech and Labor Data to Shape the Market’s Direction

The US Dollar Index (DXY) retreated slightly from its recent gains on Tuesday, as investors digested mixed economic signals and awaited crucial data releases. The market’s focus remains on Federal Reserve Chair Jerome Powell’s speech and key labor market data, which are expected to provide further insights into the central bank’s monetary policy stance.

Key Economic Events: A slew of economic indicators are scheduled for release on Wednesday, including:

• US Economic Data:

MBA Mortgage Applications
ADP Employment Change
S&P Global Services PMI
ISM Services PMI
Factory Orders
EIA Weekly Crude Oil Inventory Report
Fed Beige Book

Eurozone Economic Data:

Final HCOB Services PMI for Germany and the Eurozone

Producer Prices

UK Economic Data:

Final S&P Global Services PMI

Currency Pairs

EUR/USD: The pair recovered some ground on Tuesday, buoyed by a weaker dollar. However, the market’s attention is on the ECB’s monetary policy stance and the eurozone’s economic outlook.

GBP/USD: The British pound strengthened against the dollar, benefiting from a combination of factors, including a weaker dollar and positive UK economic data. The Bank of England’s monetary policy decisions will continue to influence the pair’s direction.

USD/JPY: The Japanese yen appreciated against the dollar, as investors sought safe-haven assets amid geopolitical tensions and concerns about global economic growth.

AUD/USD: The Australian dollar rebounded from recent lows, but its upside potential remains limited by global economic uncertainties and China’s economic slowdown.

Commodities:

Crude Oil: Oil prices surged on geopolitical tensions in the Middle East, surpassing the $70 per barrel mark.

Gold and Silver: Gold and silver prices rose, supported by safe-haven demand and inflationary pressures.

The upcoming economic data releases and central bank speeches will likely shape the market’s direction in the coming days. Investors should closely monitor these events and adjust their positions accordingly.

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