Market Drivers; US Session, August 19

Selling pressure on the US Dollar persisted as investor risk appetite strengthened ahead of crucial economic events. The release of the FOMC minutes and Federal Reserve Chair Powell’s speech at Jackson Hole loomed large.

The USD Index plunged to its lowest point in several months, nearing 101.80, as positive sentiment dominated the market. On August 20, Federal Reserve officials Bostic and Barr are scheduled to speak, followed by the API’s weekly US crude oil inventory report.

Driven by the US Dollar’s decline, EUR/USD climbed to new 2024 highs around the 1.1100 level. The eurozone’s final inflation rate and Germany’s producer prices are due for release on August 20.

GBP/USD maintained its recovery well in place and approached the key 1.3000 yardstick. Next on tap across the Channel will be Public Sector Net Borrowing figures due on August 21.

USD/JPY dropped to multi-day lows and revisited the low-145.00s following the sharp decline in the US Dollar and mixed yields. The Balance of Trade results will be the next data release noteworthy in Japan on August 21.

An auspicious start to the week saw AUD/USD climb to five-week highs around 0.6730. The RBA Minutes will be published on August 20.

Demand concerns stemming from China and increasing hopes surrounding ceasefire talks in the Middle East dragged prices of WTI to two-week lows near $73.50 per barrel.

Gold prices traded within a narrow range and stayed close to recent all-time highs around the $2,500 mark per ounce troy. Silver rose for the third straight day and surpassed the $29.00 level per ounce, or five-week tops.

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