Forex Today: Attention shifts to US ISM, JOLTs and inflation in Europe
The US Dollar (USD) has faded part of Friday’s strong advance despite the geopolitical landscape seeming to have deteriorated a tad in the last few days, while market participants appear to have already digested the hawkish remarks from Chair Warsh in Jackson Hole.
The US Dollar (USD) has softened some of Friday’s impressive surge, notwithstanding a slight increase in geopolitical tensions, while market participants seem to have already absorbed the hawkish comments from Chair Jerome H. Powell at the Jackson Hole symposium. The US Dollar Index (DXY) commenced the week on a weak note, slipping below the 99.50 threshold in the face of conflicting US Treasury yields and persistent global concerns.
Upcoming on the agenda will be the release of the Institute for Supply Management (ISM) Manufacturing Purchasing Managers’ Index (PMI), followed by the Job Openings and Labor Turnover Survey (JOLTs) and the final S&P Global Manufacturing PMI. The EUR/USD pair has shed part of its recent sharp correction, rekindling the area above 1.1600 after fresh selling pressure weighed on the US Dollar.
The announcement of the preliminary Eurozone inflation rate and German retail sales will be a focal point alongside the UK Retail Sales. GBP/USD has reversed three consecutive daily declines and reclaimed the 1.3550-1.3560 range on Monday. A flurry of economic data will be unveiled across the English Channel, including the Nationwide House Price Index, the British Retail Consortium (BRC) shop price inflation, the final S&P Global Manufacturing PMI, Mortgage Approvals and Lending, and Net Lending to Individuals.
USD/JPY has faced renewed selling pressure, reversing a multi-day uptrend and settling around the 159.50 level after a brief flirtation with the 160.00 mark. The final S&P Global Manufacturing PMI, along with capital spending figures and consumer confidence, will be released. The Australian Dollar (AUD) has faced headwinds near 0.7150, managing to make a modest advance and partially reverse Friday’s pronounced decline.
The final S&P Global Manufacturing PMI will be followed by Q2 Current Account data, Building Permits, and Private House Approvals. Crude oil prices have climbed to six-day peaks near $87.00 a barrel, spurred by unabated Middle East volatility. Gold has encountered selling pressure, briefly slipping below the $4,400 mark before attempting a feeble rebound.
Gold remains vulnerable despite the US Dollar's bearish stance, Middle East uncertainties, and fluctuating US Treasury yields.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
