Market Drivers, US Session, September 25

Market Focus Shifts to Powell’s Speech and Key Economic Data

The US Dollar Index (DXY) experienced a sharp increase, rebounding from recent lows. This rebound was fueled by a combination of factors, including expectations for a stronger US economy and potential adjustments to monetary policy.

The US dollar staged a significant recovery after briefly touching 14-month lows, causing a ripple effect across global financial markets. Investors are eagerly awaiting the release of key economic data and the highly anticipated speech by Federal Reserve Chair Jerome Powell.

Key Economic Data and Fed Speeches

• US Economic Data: Several key US economic indicators are scheduled for release, including final Q2 GDP growth igures, weekly initial jobless claims, durable goods orders, and pending home sales.

• Fed Officials: Several Federal Reserve officials, including Chair Jerome Powell, are scheduled to speak. Their comments will provide insights into the Fed’s outlook for the economy and monetary policy.

Impact on Major Currency Pairs

• EUR/USD: The euro struggled to maintain its gains against the US dollar as the greenback strengthened.
• GBP/USD: The British pound experienced a similar correction, falling in line with the broader US dollar rebound.
• USD/JPY: The Japanese yen weakened against the US dollar, reflecting the stronger greenback and potential adjustments to the Bank of Japan’s monetary policy.
• AUD/USD: The Australian dollar declined as the US dollar gained strength.


Commodity Markets

• Oil: Crude oil prices came under pressure, falling to new four-day lows.
• Gold: Gold prices reached a new all-time high amid expectations of further interest rate cuts by the Fed.
• Silver: Silver prices also rose but later retreated as the US dollar strengthened.

The global financial markets are closely watching the upcoming release of key economic data and the speech by Federal Reserve Chair Jerome Powell. The US dollar’s recent rebound has had a significant impact on currency pairs and commodity prices. Investors will be closely monitoring these developments to gauge their potential implications for the broader market outlook.