Dollar Ticks Higher and US Stock Futures Secure Gains

Dollar

The dollar index, which measures the greenback against a basket of major currencies, edged slightly higher to 92.43 ahead of a busy week. Powell's announcement in Jackson Hole that the Federal Reserve will adopt an average inflation target, signaling that interest rates could remain at their current low levels for an extended period, weighed on the US dollar. Market participants are looking forward to a series of economic releases this week, among them, the US jobs report to grasp further insight into the recovery of the economic activity. The EURUSD eased to 1.1892, and the GBPUSD declined to $1.3302.

Equities

Major US stock index futures extended their upside rally, coming to record the best Wall Street performance in more than 30 years. The S&P500 and Nasdaq posted several all-time highs this month, ensuring the sentiment recovery from the Covid19 impact, while the Dow Jones is slightly short from hitting a record high. The Federal Reserve ultra-loose monetary policy helped in restoring confidence and driving stock benchmarks to new highs. Powell's speech in Jackson Hole symposium aided the rally. On another note, the Dow Jones is kicking off the week with three new members: Salesforce, Amgen, and Honeywell, which will replace Exxon Mobil, Pfizer, and Raytheon. Moreover, Apple's 4:1 split is taking place today. The Dow Jones Industrial Average futures rose to 28782, the S&P500 futures rallied to another record of 3523, and the tech-heavy Nasdaq advanced to 12090.

Metals

Precious metals prices were mixed during the early trading hours of the week as the dollar managed to recover. The price of a gold ounce dipped to $1954, the price of a silver ounce hovered around $27.75, and palladium futures inched higher to $2201.

Oil

Oil prices advanced, supported by the generally positive sentiment about the economic recovery and the measures to be taken to secure it. The West Texas Intermediate Crude October delivery rose to $43.40 and Brent blend November delivery ascended to $46.45.

Major Economic Events

Disclaimer

The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM.COM. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.