Market Drivers – US Session – September 5

Mohamed Abdelhamid 6 September, 2022 5:04 am Commodities, Forex Market, Market Update

The US dollar started the week with positive performance against most major rival currencies, although a Federal holiday in the US maintained volumes at their lows and major pairs within limited intraday ranges.

On Monday, Moscow decided to cut energy to Europe until Western sanctions are lifted. Germany announced it will keep maintaining two nuclear power plants until April. So, uncertainty about next winter could impact the Eurozone for some time.

The USD/CAD pair is traded around 1.3140, while the AUD/USD pair battles the 0.6800 level ahead of the Reserve Bank of Australia monetary policy decision. The central bank is expected to hike the cash rate by 50 bps for a fourth consecutive month.

In a statement issued after an OPEC+ meeting in which a minor cut was agreed, Owji said current market conditions needed “careful consideration” and that cooperation within the oil alliance was helping global consumers. Read full story

Economic Data
The US trading session witnessed the release of no economic data due to observing the federal Labour Day holiday nationwide.

Other Developments

The GBP/USD pair settled at 1.1515 after falling to 1.1442. The United Kingdom confirmed Liz Truss would become the next Prime Minister after beating Rishi Sunak as Tory leader.

The EUR/USD pair fell to 0.9877, a fresh 22-year low, as the energy crisis steepens. Russian gas provider Gazprom shut down the Nord Stream 1 pipeline on Friday, reporting a leakage.

Safe-haven gold saw no action, stuck around $1,710 a troy ounce. The OPEC+ announced plans to cut production targets by about 100,000 K barrels per day starting October. The announcement lifted oil prices, although the US holiday limited activity around WTI, now changing hands at $88.80 a barrel.

Iran’s minister of petroleum Javad Owji said the world needed more Iranian oil, and that his country was ready to play a role in providing it away from politics, the Iranian oil ministry’s news agency SHANA reported on Monday.

Also Read:
US Dollar Index Surges On Labour Day