The Greenback faced downward pressure due to weak US labor market data and signs of continuing disinflationary pressures in August, leading investors to anticipate a rate cut by the Fed. The US Dollar Index ended a four-day positive streak as soft US data emerged. Import and Export Prices are expected on September 13, followed by the preliminary Michigan Consumer Sentiment gauge.
EUR/USD rebounded after four days of losses, while the euro zone’s Industrial Production data is set to be released on September 13. The Eurogroup Meeting and a speech by the ECB’s Christine Lagarde are also on the agenda. GBP/USD broke through the 1.3100 level as the US Dollar weakened, with the UK’s Inflation Rate data due on September 18.
USD/JPY continued its downward trend for the week, dropping below the 142.00 support level due to higher yields and a pullback in the Greenback. Final Industrial Production figures and Capacity Utilization data are expected on September 11. Meanwhile, AUD/USD surged to weekly highs above 0.6700 as risk assets attracted strong buying interest. The Westpac Leading Index is scheduled for release on September 18.
WTI prices rose towards the $70.00 mark per barrel on supply concerns ahead of Hurricane Francine’s landfall. Gold prices hit record highs around $2,555 per ounce in response to a weaker US Dollar and expectations of Fed easing. Silver also surged to two-week highs, nearing the $30.00 mark per ounce.
