The week began with the US Dollar Index (DXY) making a strong rebound to around the 101.00 level as investors awaited key data releases in the US economy, particularly focusing on the labour market. The final S&P Global Manufacturing PMI, JOLTs Job Openings, Construction Spending, and ISM Manufacturing PMI were all set to be released. In addition, speeches from Fed officials Bostic and Cook were scheduled, adding to market anticipation.
In the forex market, the EUR/USD pair failed to hold above the 1.1200 level and eventually fell as the US Dollar gained strength. Events such as the preliminary Inflation Rate in the euro bloc and final HCOB Manufacturing PMI in Germany and the eurozone were in focus. ECB officials De Guindos and Schnabel were also scheduled to speak, providing further insight into market sentiment.
GBP/USD traded with uncertainty, settling around 1.3360 after briefly rising above 1.3400. The final S&P Global Manufacturing PMI was expected to provide more clarity on the state of the UK economy. Meanwhile, USD/JPY managed to climb back above 143.00 after a dip to 141.60, with focus on the Unemployment Rate and the BoJ Summary of Opinions in Japan.
AUD/USD continued its upward trajectory, surpassing 0.6900 to reach new year-to-date highs, driven by Chinese stimulus measures. Data releases including the final Judo Bank Manufacturing PMI, Building Permits, Retail Sales, Private House Approvals, and Commodity Prices were awaited. WTI prices remained volatile around $68.50 despite geopolitical concerns and additional stimulus in China.
In the commodities market, Gold prices faced further pressure, trading near $2,630 per ounce troy after falling on Friday. Similarly, Silver prices dropped to four-day lows, revisiting the sub-$31.00 region per ounce. The market remained cautious amid ongoing economic data releases and geopolitical developments, impacting various asset classes.
