The loss of impetus in the risk-associated universe allowed the US Dollar to rebound from Wednesday’s 2024 peaks on Thursday, helped by the equally decent bounce in US yields, all prior to the speech by Fed’s Powell at Jackson Hole.
Here is what you need to know on Friday, August 23:
After bottoming out in the sub-101.00 region on Wednesday, the USD Index (DXY) regained some balance and revisited the 101.60-101.65 band on Thursday. Chief Powell’s speech at the Jackson Hole Symposium will take centre stage on August 23, seconded by New Home Sales.
The move higher in the Greenback prompted EUR/USD to give away part of its recent gains to level north of the 1.1100 mark. On August 23, the ECB will release its Consumer Inflation Expectations survey.
GBP/USD was the exception among its risky peers, managing to maintain a bullish bias for the sixth consecutive day and hitting a new YTD peak around 1.3130. The Consumer Confidence tracked by GfK is due on August 23, followed by the speech by the BoE’s A. Bailey.
USD/JPY rose markedly on the back of the robust bounce in the dollar and higher US yields. The BoJ’s K. Ueda will testify before Parliament on August 23, ahead of the Inflation Rate.
The sharp rebound in the dollar hurt AUD/USD and motivated it to add to Wednesday’s losses and challenge the 0.6700 neighbourhood. The next key event in Oz will be the RBA’s Monthly CPI Indicator on August 28.
Prices of WTI set aside usual demand concerns from China and focused on the prospects of interest rate cuts by the Fed, sparking a marked rebound beyond the $73.00 mark per barrel.
Prices of Gold broke below the $2,500 mark per ounce troy in response to the strong pick-up in the dollar and higher US yields. Same path followed its cousin Silver, which retreated to three-day lows in the sub-$29.00 zone per ounce.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds gains above 1.1100 as USD weakens ahead of Powell
EUR/USD is consolidating weekly gains above 1.1100 in European trading on Friday. The pair draws support from the renewed US Dollar selling but the upside could be capped by the dovish ECB-speak. The focus now remains on Fed Chair Powell's speech in Jackson Hole.
GBP/USD stays firm above 1.3100, Fed/ BoE speakers eyed
GBP/USD is trading with mild gains above 1.3100 in the European session on Friday. Dovish Fed expectations continue to sag the US Dollar, as traders shift their focus to the speeches by Fed Chair Powell and BoE Governor Bailey at the Jackson Hole Symposium.
Gold price remains below $2,500 as traders move to the sidelines ahead of Powell's speech
Gold price attracts some dip-buying on the last day of the week and reverses a part of Thurdsay's slide of over 1% to the weekly low. The US Dollar struggles to capitalize on the overnight bounce from the YTD low amid the prospects for lower interest rates in the US.
Decentraland price is set for a rally after breaking above the descending trendline
Decentraland (MANA) price broke above the descending trendline and trades up 1.5% as of Friday at $0.291. Additionally, on-chain data support further price gains, as MANA's Exchange Flow Balance shows a negative spike, and the long-to-short ratio stays above one.
Jerome Powell expected to lay groundwork for September rate cut in Jackson Hole speech
Market participants will closely scrutinize Powell’s speech for any fresh hints on the trajectory of monetary policy, particularly about the magnitude of the Fed’s first interest-rate cut in years.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.