Market Drivers; US Session, September 3

The US dollar has gained momentum, reaching two-week highs against a backdrop of weakening risk-linked assets. This surge follows an inconclusive price action on Monday due to the Labor Day holiday.

Dollar Strengthens Amidst Rising Recession Fears

The US Dollar Index (DXY) has advanced further, approaching the crucial 102.00 level. This rise is fueled by renewed recession concerns, despite declining US yields. Several key economic indicators are scheduled for release today, including Mortgage Applications by MBA, Balance of Trade results, Factory Orders, and the Fed Beige Book.

The euro has weakened against the dollar, falling below 1.1030. The final HCOB Services PMI in Germany and the euro bloc is expected to be released today.

The British pound has also experienced a decline, breaching the 1.3100 support level to hit two-week lows. The final S&P Global Services PMI will be published today.

The Japanese yen has strengthened, pushing USD/JPY towards the 145.00 zone after four consecutive daily advances. The final Jibun Bank Services PMI is scheduled for release today.

The Australian dollar has plummeted by more than 1%, approaching the key support level of 0.6700. This decline is attributed to the stronger US dollar, concerns about Chinese demand, and persistent weakness in commodities. The Ai Group Industry Index and the final Judo Bank Services PMI are due today.

Oil prices have collapsed to the $70.00 per barrel level, driven by the potential for a deal in Libya that could resume local oil production and exports.

Gold prices have fallen below the $2,500 per ounce troy mark, reaching new multi-day lows amidst the strengthening US dollar. Silver has also experienced a decline, reaching three-week lows below the $28.00 per ounce mark.

Also Read:

BoC’s Looming Rate Decision Expectations

What’s Behind Gold’s Recent Dizzying Decline?

Dollar-Yen Faces Headwinds as US Treasury Yields Slide

Solana Declines Amid Surging US Dollar

Stocks Market Meltdown: Economic Fears and Stock Market Collapse

OPEC’s Risky Position: Supply-Demand Balance Required