The Greenback managed to regain some composure and partially reverse steep losses recorded in the last couple of days, while stocks worldwide rebounded on the back of shrinking pessimism among market participants. The RBA kept the OCR unchanged, as expected, although it came up with a hawkish message.
Here is what you need to know on Wednesday, August 7:
The USD Index (DXY) rose around a big figure from Monday’s sharp pullback to the 102.00 region, helped by renewed sentiment and the marked bounce in US yields. On August 7, weekly Mortgage Applications tracked by MBA are due, seconded by the EIA’s report on US crude oil inventories.
EUR/USD came under pressure and set aside two sessions in a row of gains, including a move beyond the psychological 1.1000 hurdle. Germany’s Balance of Trade results will only be published on the domestic docket on August 7.
Extra weakness saw GBP/USD add to Monday’s losses and retreated to five-week lows near the 1.2670 region. The UK calendar is empty on August 7.
USD/JPY climbed beyond 146.00 and reversed a multi-day pullback amidst some renewed selling pressure hitting the yen. The preliminary Coincident Index and Leading Economic Index will be published on August 7.
After bottoming out in YTD lows near 0.6350 on Monday, AUD/USD regained some upside traction and reclaimed the area north of the 0.6500 barrier underpinned by another hawkish hold by the RBA. The Ai Group Industry Index is only due in Oz on August 7.
Chinese demand jitters weighed on traders’ sentiment once again, keeping WTI prices depressed around $73.00 amidst the ongoing multi-day bearish leg.
Gold prices retreated further and retested the $2,380 mark per ounce troy in response to the marked rebound in the dollar and higher US yields. Silver prices added to Monday’s retracement and approached recent lows near $26.50 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
AUD/USD regains 0.6500 helped by the RBA
AUD/USD rapidly left behind Monday’s yearly lows and managed to regain the 0.6500 hurdle and above as investors assessed another hawkish hold by the RBA at its meeting on Tuesday.
EUR/USD retreats from recent tops and refocuses on 1.0900
The renewed buying pressure in the Greenback weighed on the risk-linked assets, prompting EUR/USD to leave behind part of the recent two-day strong rebound and shift its attention to the 1.0900 region.
Gold loses traction, drops below $2,400 as US yields rebound
After fluctuating in a tight channel near $2,410, Gold reverses its direction and trades below $2,400. The recovery seen in the US Treasury bond yields following Monday's sharp decline doesn't allow XAU/USD to gain traction in the second half of the day.
Ripple sends key invite to researchers, pushes XRP 4% higher post massive sell-off
Ripple (XRP) suffered a steep correction in the crypto market carnage on Monday. XRP slipped to a $0.4300 low, its lowest level since mid-July, on August 5. But the altcoin has rallied 4% on Tuesday, erasing recent losses.
A pause for the cause
The Dollar selling ends on Monday and Monday night. Emergency rate cut? no way, Jose! Good Day.. And a Tom Teriffic Tuesday to you! My poor beloved Cardinals... They can't stand prosperity, and they continue to choose which games they will hit the ball.