Forex Today: Investors now look at the FOMC Minutes

Pablo Piovano FXStreet

Sellers continued to punish the Greenback, motivating it to flirt with 2024 lows on the back of further improvement in the risk complex, as investors forecast a dovish message from Powell at Jackson Hole.

Here is what you need to know on Wednesday, August 21:

The USD Index (DXY) extended its decline and traded just pips away from the so-far yearly lows near 101.30. The weekly MBA Mortgage Applications are due on August 21 ahead of the publication of the FOMC Minutes and the weekly report on US crude oil inventories by the EIA.

EUR/USD extended its uptrend further north of the 1.1100 mark to print fresh YTD highs. The only release of note on August 21 will be a 10-year Bund Auction.

GBP/USD advanced to new 2024 peaks near 1.3050 on the back of further selling in the US Dollar. The Public Sector Net Borrowing figures are expected on August 21.

USD/JPY retreated to two-week lows near 145.30 following the increasing downward bias in the Greenback. The Balance of Trade results will be published on August 21.

The bid bias in AUD/USD remained unabated for yet another day, motivating the pair to climb to five-week tops around 0.6750. The Leading Index tracked by Westpac is due on August 21.

Ceasefire talks in the Middle East, in combination with incessant demand fears from China, dragged the prices of WTI to two-week lows around $72.50.

Prices of Gold hit a record high past the $2,530 mark per barrel amidst hopes of rate cuts by the Fed and further weakness in the Dollar. Silver prices faltered just ahead of the key $30.00 mark per ounce, receding to the mid-$29.00s towards the end of the day.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD keeps the offered stance just above 1.1700

EUR/USD is coming under heavy selling pressure in what has been a rather grim start to the new trading week, with the pair now trading close to the 1.1700 support area as the US Dollar stages a solid rebound. The prevailing flight to safety mood continues to favour the Greenback, as investors react to the escalating conflict in the Middle East and trim risk exposure across the board.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold battles to retain the positive momentum

Gold now surrenders part of the earlier advance past the $5,400 mark per troy ounce at the beginning of the week. Indeed, the precious metal’s strong uptick remains fuelled by increasing geopolitical tensions in the Middle East amid the intense demand for safer assets.