Publication of Australian GDP figures for the second quarter. German factory orders and Eurozone retail sales will also be released. The Bank of Canada will hold its monetary policy meeting.
Here’s what you need to know on Wednesday, September 6:
The Dollar Index hit a nine-month high on Tuesday, supported by rising Treasury yields and cautious market sentiment. Economic data from China and the Eurozone weighed on market sentiment.
The Euro lagged after the downward revision of the services PMI for August, raising doubts about the next move by the European Central Bank (ECB). He EUR/USD pair fell to 1.0700, its lowest level since June. The general trend remains bearish. Also, the pair EUR/GBP fell again and settled at 0.8525.
GBP/USD also hit intraday monthly lows; it pared losses during the American session but remained below 1.2600.
USD/JPY accelerated its bullish momentum, breaking above 147.50, buoyed by higher Treasury yields. Intervention comments and speculation are likely.
USD/CAD rose on Tuesday but finished off its highs after the Loonie dollar outperformed during the American session, supported by the recovery in crude oil prices. The pair reached 1.3671, the highest intraday level since November, before returning to 1.3620. The Bank of Canada will announce its monetary policy decision on Wednesday, with no changes expected.
TD Securities analysts on the BOC:
We expect the Bank of Canada to hold the overnight rate at 5.00% as slower activity data and moderating labor markets allow the Bank to look beyond a stronger CPI. We do not expect any substantive change in the Bank’s guidance, as they will keep hikes on the table in the future.
The Australian dollar (AUD) fell on Tuesday after the Reserve Bank of Australia (RBA) kept its interest rate unchanged, as expected, citing downside risks to the economy. The AUD/USD pair broke below 0.6400, reaching its lowest level since November. On Wednesday, Australia will release second quarter GDP growth data.
The NZD/USD pair suffered its worst daily losses in weeks as the US dollar strengthened. The pair fell below 0.5900 and bottomed at 0.5859.
Gold ended its consolidation phase down from almost $1,940 to $1,925. The bias remains to the downside, pressured by rising yields and the US dollar. Silver fell for the fifth day in a row, finding support above the 20-day SMA at $23.50.
Crude oil prices rose on Tuesday after Russia and Saudi Arabia announced an extension of their unilateral output cuts. WTI hit $88.00 for the first time since November before paring gains.
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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.
