- XAG/USD rose more than 1% and jumped near $24.70.
- The USD trades flat, allowing precious metals to advance.
- JOLTs Job openings, ADP and NFP from the US from July reports are the week's highlights.
On Monday, the XAG/USD saw significant gains, mainly by a positive market mood and a relatively weak USD. That being said, markets may see volatility during the week as the US will release key labour market data that will affect the bets on the next Federal Reserve (Fed) decisions.
According to the consensus, July saw a decline in job creation, while hourly wages and the unemployment rate held steady. In that, the direction of the US labour market will be crucial for investors, as Chair Powell noted last week that the decision to set the next interest rate will only be based on new data. In addition, he added that to normalise inflation, the Fed expects “some” softening of the labour market.
The JOLTs Job Opening report will be released on Tuesday, and the ADP employment change report will be released on Wednesday. New jobless claims data will be released on Thursday, and the Non-Farm Payrolls (NFP) report on Friday, the primary week’s highlight.
As for now, according to World Interest Rate Possibilities (WIRP) tool, the markets are currently pricing in a 25% chance of a 25 bps hike in the September meeting and a 40% chance of a 25 bps hike in November. However, those expectations may see significant changes this week, which could fuel volatility in bond markets and hence in the price dynamics of the precious metals.
XAG/USD Levels to watch
Based on the daily chart, the XAG/USD appears to be bullish in the short term, as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) suggest that the buyers have control as they stand in positive territory. Additionally, the pair is above the
20,100,200-day SMAs, highlighting the continued dominance of bulls on a broader scale.
Resistance levels: $24.90,$25.00, $25.30.
Support levels: $24.30, $24.15 (20-day SMA), $24.00.
XAG/USD Daily chart
-638264197668314913.png)
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 nears 1.1200 after US PCE inflation data
EUR/USD approaches 1.1200 following generally softer-than-anticipated US inflation-related figures. The pair lacks momentum amid tepid European data undermining demand for the Euro. Still, optimism weighs on the USD.
GBP/USD battles the 1.3400 level for a definitive bullish breakout
GBP/USD advances modestly beyond the 1.3400 level after US PCE inflation data showed price pressures continued to recede in August. Sterling Pound aims for fresh yearly highs beyond the 1.3433 peak posted earlier this week.
Gold hovers around $2,670 as US Dollar resumes decline
Gold price retains its bullish bias near fresh record highs, as demand for the US Dollar remains subdued following US PCE inflation figures. The strong momentum around stocks limits demand for the safe-haven metal.
Week ahead – NFP on tap amid bets of another bold Fed rate cut
Investors see decent chance of another 50bps cut in November. Fed speakers, ISM PMIs and NFP to shape rate cut bets. Eurozone CPI data awaited amid bets for more ECB cuts. China PMIs and BoJ Summary of Opinions also on tap.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.