EURUSD
- The EUR/USD currency pair exhibited a reversal from its intraday high, even though it lacked significant upside momentum during the early hours of Tuesday morning in Europe.
- European attention is drawn to forthcoming inflation reports. Throughout the week, Eurozone countries are set to release preliminary August Consumer Price Index (CPI) data. Additionally, the German Gfk Consumer Confidence survey is scheduled for release on Tuesday.
- The US Dollar experienced a weakening trend at the start of the week. This was attributed to improved market sentiment, largely driven by additional measures implemented by China.
- During the American session, the Dallas Fed Manufacturing Index improved from -20 to -17.2. While this improvement is notable, the details of the report didn't overwhelmingly favor positivity.
| SMA (20) | Falling |
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| RSI (14) | Neutral | ||
| MACD (12, 26, 9) | Slightly Falling |
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Closing statement: In summary, the EUR/USD currency pair displayed a reversal despite limited upward momentum. As market attention turns to crucial inflation reports and consumer confidence data, coupled with the dynamics of the US Dollar and ongoing global events, the potential for increased market volatility is noteworthy.
GBPUSD
- GBP/USD is seeing consecutive days of buyer interest, supported by a weakened USD.
- Despite a technically bearish outlook, an improvement in risk sentiment could aid the Pound Sterling in curbing its losses.
- Bank of England's Deputy Governor Ben Broadbent's hawkish comments at the Jackson Hole Symposium halted a four-day losing streak for the pair.
- The US Dollar Index (DXY), measuring the dollar's performance against major currencies, continues its decline, hovering around 103.90.
- The JOLTS Job Openings report is scheduled for Tuesday, which could influence further movements in the GBP/USD pair.
GOLD
- Gold prices surged to nearly a three-week high on Tuesday, driven by a weakening dollar and decreasing Treasury yields.
- While September's rate decision is largely anticipated to remain unchanged, reduced bets on a rate cut this year have contributed to market sentiment.
- Falling US bond yields and an optimistic risk sentiment have collectively pressured the dollar, lending support to gold.
- Attention now shifts to pivotal U.S. economic data releases. Revised Q2 GDP data, personal consumption expenditures (PCE) readings, and the August nonfarm payrolls report are on the radar.
- Positive economic indicators, particularly in inflation and labor market data, could embolden the Federal Reserve to continue raising interest rates, potentially dampening gold's appeal.
Closing statement: In light of these factors, gold's trajectory in the coming days will be significantly influenced by the outcomes of the upcoming U.S. economic data releases and their impact on the Federal Reserve's monetary policy stance.
CRUDE OIL
- Crude oil prices experienced a slight decline in early Asian trade on Tuesday, with market attention directed towards imminent economic data releases from major oil importers.
- Crude prices exhibited minimal movement on Monday, reflecting cautious trading patterns ahead of crucial economic data announcements from the U.S. and China.
- A robust two-month rally in oil markets witnessed a slowdown in mid-August, triggered by renewed concerns regarding rising interest rates and sluggish demand, particularly in China, prompting investors to take profits.
- Upcoming Chinese purchasing managers' index (PMI) data, set to be disclosed on Thursday and Friday, is anticipated to provide insights into the business activity within the world's largest oil importer.
- The anticipated landfall of Tropical Storm Idalia in Florida by Wednesday has raised concerns about extreme weather conditions along the Gulf of Mexico, possibly causing production disruptions in this oil-rich region.
| SMA (20) | Slightly Falling |
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| RSI (14) | Neutral | ||
| MACD (12, 26, 9) | Falling |
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Closing statement: As the oil market navigates through these factors, the outcomes of the upcoming economic data releases and the potential impact of the tropical storm on production will likely play pivotal roles in shaping crude oil prices in the days ahead.
DAX
- The DAX demonstrated a robust 1.03% surge on Monday, buoyed by positive responses to stimulus measures in Beijing and a supportive environment for the Chinese equity market.
- The recently announced German GfK Consumer Climate figures for September revealed a concerning decline of -25.5 in consumer confidence, potentially signaling weaker consumption patterns and exerting pressure on retail stocks.
- Consumer expert Ralf Buerkl noted that the chances of sustainable recovery in consumer sentiment before the end of the year are diminishing, introducing uncertainties in the retail sector.
- Monday's market movements in the DAX were primarily influenced by bank and tech stocks. Upcoming earnings from UBS on Thursday could hold significant weight, with investors hoping for positive outcomes.
- Falling government bond yields and the upbeat performance of the NASDAQ Composite Index provided considerable support to tech stocks in the DAX. Infineon, in particular, rose by 1.95%, contributing to the tech sector's positive momentum.
| SMA (20) | Slightly Falling |
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| RSI (14) | Slightly Rising |
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| MACD (12, 26, 9) | Slightly Rising |
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Closing statement: With these factors shaping the DAX's recent performance, investors are attentively monitoring developments in the Chinese market, the impact of consumer sentiment on retail, and the earnings results from key players, all of which will likely influence the DAX's trajectory moving forward.