Market Drivers; US Session, August 26

Mohamed Abdelhamid 27 August, 2024 4:01 am Commodities, Forex Market, Market Update

The US Dollar Index (DXY) initially dipped to new lows near 100.50 on Monday but managed to reverse that decline later in the day, bouncing back toward the 101.00 barrier. Keep an eye on the Consumer Confidence gauge published by the Conference Board and the FHFA’s House Price Index on August 27.

EUR/USD Correction:

The US dollar’s mild rebound triggered a corrective move in EUR/USD, pushing it down to the 1.1150 zone at the start of the week. On the same day (August 27), Germany will release its final Q2 GDP Growth Rate data.

The GBP/USD pair traded within a tight range, settling around the 1.3200 neighborhood after a multi-day upward trend. The CBI Distributive Trades report is scheduled for release on August 27.

USD/JPY Volatility:

USD/JPY experienced alternating gains and losses, briefly touching three-week lows near 143.40. The Japanese docket will reveal the final Coincident Index and Leading Economic Index on August 28.

Risk-Associated Space and AUD/USD:

The US dollar’s resurgence influenced risk sentiment, leading to selling pressure. As a result, AUD/USD retraced some of its sharp gains from last Friday. Keep an eye on Australia’s RBA Monthly CPI Indicator due on August 28.

Commodities:

Geopolitical concerns and potential supply disruptions in Libya supported WTI crude oil prices, pushing them beyond the $77.00 per barrel mark on Monday.

Gold Prices: Gold prices remained close to their recent record levels, maintaining a trade above $2,500 per ounce. Rising geopolitical fears in the Middle East and expectations of Fed rate cuts in September contributed to this trend.
Silver Hits Six-Week Highs:

Silver prices surpassed the $30.00 per ounce mark, reaching new six-week highs.

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