On Tuesday, the US Dollar did not see much success as sellers took control in the market ahead of key US data releases later in the week. The British pound, on the other hand, outperformed its peers due to the Bank of England’s persistent restrictive stance.
Moving forward to Wednesday, August 28, the US Dollar Index was focused on the downside after leaving behind Monday’s gains. Key events to watch out for included the MBA’s weekly Mortgage Applications results, the EIA’s report on US crude oil inventories, and a speech by FOMC’s Waller. Meanwhile, EUR/USD saw some upside traction after a negative start to the week, and the ECB was set to publish its M3 Money Supply figures.
GBP/USD rose to more than two-year highs near 1.3250, driven by expectations that the BoE would not reduce rates as much as originally anticipated. Across the Channel, however, there were no data releases scheduled for August 28. USD/JPY continued its downtrend and tested the key support level at 144.00, while AUD/USD remained near recent peaks with the RBA’s Monthly CPI Indicator set to be released.
In the commodity markets, WTI oil prices retreated after three days of gains due to renewed demand concerns and profit-taking following a recent rebound. Gold prices alternated between gains and losses above $2,500 per ounce, while silver prices rose slightly and hovered near the $30.00 mark per ounce.
Overall, the market remained cautious and uncertain ahead of key economic data releases later in the week. The performance of major currency pairs and commodities was influenced by central bank policies, economic indicators, and global demand dynamics. Traders were advised to stay informed and vigilant in the ever-changing market environment.
