The Greenback continued its upward trend on Tuesday, although it seemed to lose some momentum ahead of the release of key US CPI readings on Wednesday. The US Dollar Index remained around 101.70, with important data releases scheduled for the day including the Inflation Rate tracked by the CPI, the weekly MBA Mortgage Applications, and the EIA’s weekly report on crude oil inventories.
EUR/USD saw a decrease for the third consecutive day, approaching the key support area near 1.1000. The euro area is awaiting the ECB’s interest rate decision on September 12. GBP/USD traded within a tight range amid a cautious FX market sentiment. On September 11, the UK will release GDP figures, Balance of Trade results, Construction Output, Industrial and Manufacturing Production, and the NIESR Monthly GDP Tracker.
USD/JPY continued its downtrend, breaking below the 143.00 support and focusing on recent lows below 142.00. The BoJ’s Nakagawa is scheduled to speak on September 11. AUD/USD retreated for the third consecutive day but found some support around the 0.6650-0.6640 range. Consumer Inflation Expectations and a speech by the RBA’s Hunter are expected on September 11.
WTI prices dropped to around $65.00 per barrel due to demand concerns and a discouraging OPEC report. Gold prices increased on Monday due to slight gains in the greenback and falling US yields ahead of the US CPI release. Silver prices hovered around $28.30 following an earlier uptick to two-day highs.
In summary, the US Dollar maintained its strength on Tuesday, with key data releases and events scheduled for September 11. Major currency pairs like EUR/USD and GBP/USD experienced fluctuations, while commodities such as WTI, Gold, and Silver reacted to market conditions and upcoming economic reports. Traders are closely monitoring developments in the global economy to make informed decisions in the financial markets.
