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The USD is trading weakly against the majority of its competitors on Monday due in large part to a small consolidation and a risk-positive market environment. On the other side, while markets continue to assess Jerome Powell’s speech on Friday, the hawkish rhetoric of the European Central Bank is gaining more traction.
After a strong recovery, the price of gold has levelled out as investors look for new reasons to take action. The precious metal was selling for $1921.51 per ounce. At the Jackson Hole Symposium, Fed Chair Jerome Powell reaffirmed that future policy decisions will be based on facts.
The EUR/GBP pair climbed late in the New York session to gains above 0.8550, courtesy of a risk-on impulse and technical indicator, suggesting further upside is expected amid the lack of economic data on the UK calendar. The pair is trading at 0.8585, gains 0.11%.
The Dallas Fed’s Texas Manufacturing survey has revealed that the Fed’s hawkish interest rate hikes have had a negative impact on the economy. The August survey found that the production index, which measures factory activity in the state, fell again in August, dropping 6 points to -11.2, the lowest level since May 2020.
Weakness has also been seen in the new orders index, which has been in negative territory for more than a year. Perceptions of broader business conditions continued to worsen in August, with the general business activity index remaining negative but ticking up.
Uncertainty regarding outlooks continued to rise, with the corresponding index remaining positive, though it fell eight points in August to its lowest reading in more than two years. The survey respondents paint a mostly negative picture about the Federal Reserve’s monetary tightening policy and its impact on business.
Also Read:
EUR/USD rises on consolidating US dollar
Dallas Fed’s survey reveals cons of hawkishness
AUD/USD rebounds on strong Aussie sales after Women’s World Cup
US NFP data outlook for August looks uncertain
WTI surges despite Chinese economic fears
Gold price moves sideways as investors await key economic data
