Forex Today: Markets Quiet Ahead of Key Data Release

This is what you need to know to trade today tuesday august 30:

Following Monday’s choppy session, markets appear to have calmed down on Tuesday with the Dollar Index (DXY) continuing to move sideways below 109.00 in European morning. US stock index futures are up 0.2%-0.4%, pointing to an improving mood in the markets. The data on the sentiment of consumers and companies in the euro zone, as well as the data on inflation for August in Germany, will be the protagonists of the European economic agenda. In the second half of the day, market participants will closely monitor the Conference Board consumer confidence index and US JOLTS job openings data.

FOMC Chairman Jerome Powell’s remarks at last week’s Jackson Hole Symposium raised the probability of a 75 basis point rate hike in September to 70% and helped the dollar hold firm against its rivals. However, the 10-year US Treasury bond yield held steady around 3.1% on Monday and did not allow DXY to gain any further bullish momentum.

During Asian trading on Tuesday, news from China showed that the country tightened coronavirus-related restrictions in Shenzen. It was also reported that China could start limiting industrial production to reduce emissions. Reflecting the negative impact of these developments, the Shanghai Composite lost almost 0.5% on Tuesday.

The pair EUR/USD managed a rebound and closed virtually unchanged, slightly below parity on Monday. Aggressive comments from European Central Bank officials and rising expectations of an ECB interest rate hike of 75 basis points in September helped the common currency hold its ground. Heading into the European session, the pair is trading in a relatively tight range below 1.0000. Inflation, as measured by the Consumer Price Index, in Germany is forecast to rise to 7.8% annually in August from 7.5% in July.

The GBP/USD erased a small portion of its daily losses during American trading hours on Monday, but closed the day in negative territory. The pair is trading in a relatively tight range above 1.1700 early on Tuesday.

The Prayed it dipped as low as $1,720 during the European session on Monday, before ending the day slightly below $1,740. XAU/USD remains under modest downward pressure on Tuesday and is trading around $1,730.

The USD/JPY gained almost 100 points on Tuesday but lost its upside momentum after failing to break above 139.00. The pair is moving sideways around the mid-138.00 mark on Tuesday. Data from Japan showed earlier in the day that the jobless rate was unchanged at 2.6% in July, as expected.

The Bitcoin it rose almost 4% on Monday and managed to recover $20,000. BTC/USD is trading in positive territory near $20,500 early Tuesday. ethereum posted strong daily gains on Monday and extended its rally beyond $1,500 on Tuesday.