Market Drivers; US Session, May 20

Mohamed Abdelhamid 20 May, 2024 11:44 pm Commodities, Forex Market, Market Update

On Monday, the spotlight was on metals, particularly Gold and Copper. Both traded at record highs early in the day. However, they later retreated during a quiet European morning due to most local markets being closed for Whit Monday celebrations.

During the American session, the macroeconomic calendar featured various Federal Reserve speakers. Unfortunately, their messages were well-known and failed to trigger significant action across the foreign exchange (FX) board.

Forex Space

The US Dollar took cues from the metals. It initially recovered modestly when Gold slid, but it resumed its decline before Wall Street’s closing bell. Specifically, XAU/USD (Gold/US Dollar) exerted pressure around the $2,430 price zone.

Currency pairs also played a role:

EUR/USD held steady around 1.0860.

GBP/USD hovered near 1.2700.

Commodity-linked currencies (such as AUD and CAD) experienced volatility, ending the day with losses against the US Dollar.

Wall Street’s performance was mixed: the DJIA (Dow Jones Industrial Average) lost 200 points, while the S&P500 and Nasdaq Composite posted uneven gains.

Looking ahead:

The Asian session will feature Australian Westpac Consumer Confidence data and the Reserve Bank of Australia (RBA) meeting minutes. The Eurozone will also release its inflation data. However, there won’t be any other significant releases on Tuesday.