The US Dollar Index (DXY) experienced a decrease to multi-day lows close to 101.20 as speculation around a potential 50 bps rate cut by the Federal Reserve grew stronger following data showing a further cooling in the US labor market. This comes ahead of key economic metrics scheduled later in the week. On Thursday, September 5, the market is focused on indicators such as the ADP Employment Change, Initial Jobless Claims, S&P Global Services PMI, and the ISM Services PMI.
EUR/USD saw a recovery and approached the 1.1100 level as the US Dollar weakened. Important data releases on September 5 include Germany’s Factory Orders, the HCOB Construction PMI in Germany and the euro area, and Retail Sales in the euro bloc. Meanwhile, GBP/USD climbed back above 1.3100, buoyed by a positive mood in the risk complex. New Car Sales data and the final S&P Global Construction PMI are also on the agenda for September 5.
The Japanese Yen continued to gain strength, contributing to a retest of the 144.00 region by USD/JPY as the US Dollar retreated. Average Cash Earnings and Foreign Bond Investment figures are expected to be released on September 5. In the meantime, AUD/USD remained relatively stable above 0.6700 despite concerns related to China, a weakening Dollar, and falling commodity prices. The Balance of Trade results and a speech by the RBA’s M. Bullock are scheduled for September 5.
Oil prices faced downward pressure, with WTI dropping to new yearly lows near $69.00 per barrel due to bearish sentiment in the market. On the other hand, gold prices fluctuated below the $2,500 level per ounce troy, while silver saw some gains surpassing $28.00 per ounce bolstered by a weakening Dollar and negative US yield performance.
