The US dollar added to Friday’s strong rally despite US yields trading mostly lower, all against the backdrop of continued expectations of a Fed rate cut later this month.
Here’s what you need to know on Tuesday, September 10:
The US Dollar Index (DXY) rose to three-day highs near 101.80 as investors priced in a 25 basis point rate cut as the most likely scenario at the next Fed meeting. The NFIB Business Optimism Index will be released on September 10 along with the API’s weekly report on US crude oil supplies.
EUR/USD succumbed once again to the Dollar’s upbeat tone, approaching recent lows around the 1.1030 area. The final inflation rate in Germany will be in focus on September 10.
Further weakness saw GBP/USD retreat to three-week lows near 1.3070 following the US Dollar’s strong recovery. The important UK labour market report is due on September 10.
USD/JPY has put aside a four-day losing streak and flirted with the 144.00 region on the back of a strong move higher in the Dollar. Next on the Japanese calendar will be BoJ Nakagawa’s speech on September 11.
The AUD/USD traded volatilely and ended the day with modest losses around 0.6660. The Westpac Consumer Confidence Index is expected on September 10, followed by NAB Business Confidence, final building permits and final private housing approvals.
The resurgence of supply disruption concerns appears to have temporarily offset concerns over Chinese demand, helping WTI prices regain some composure and move towards the vicinity of the $69.00 per barrel mark.
Gold prices rose modestly on Monday, leaving behind some of the recent losses and regaining the area beyond the key $2,500 per troy ounce. Silver prices followed suit despite the strength of the US Dollar and regained the $28.00 per ounce mark and beyond.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
