Dollar Softens as Recovery Woes Weigh on Confidence

Dollar

The dollar index which measures the greenback against a basket of major currencies hovered around 93 handle following US data. Despite the improvement in housing data; the CB consumer confidence fell to 84.8 in August, the lowest reading since 2014. The reading is signaling investors' woes over the path of economic recovery. Market participants are awaiting Powell's speech in Jackson Hole symposium to have more insight into the recovery and the Fed's plan. The EURUSD held steady above $1.18, the GBPUSD inched higher to $1.3163, and the AUDUSD rallied to $0.7206.

Metals

Precious metals prices drifted lower as US treasury yields rallied. The US 10-year yields rose to a ten-day high of 0.716%. The price of a gold ounce dipped to $1913, the price of a silver ounce declined to $26.06, and palladium futures held steady near $2180.

Oil

Oil prices surged supported by the US storms, optimism over US-China trade talks, and drop in US inventories. US oil producers shut down their offshore activity ahead of Hurricane Laura following the worst alerts in 15 years. On the other hand, the recent constructive trade call between China and the United States eased investors’ woes over the economic recovery. Moreover, the American Petroleum Institute reported a decline of 4.524 million barrels in US inventories ahead of the official figures by the US Energy Information Administration later today. The West Texas Intermediate crude October delivery rallied to $43.45, and Brent Blend October delivery soared to $46.09

Major Economic Events

Disclaimer

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