The US Dollar continued its downward trend this week, dropping below the significant 101.00 level. This decline comes amid persistently low US Treasury yields and ongoing speculation about a potential half-point interest rate cut by the Federal Reserve.
US Dollar Index (DXY) Struggles
The US Dollar Index (DXY) extended its losses, testing the 101.00 support level. Market participants are wary ahead of the crucial US labor market report set for release on September 6. This report will include the Nonfarm Payrolls and Unemployment Rate figures, along with a speech from Federal Reserve official John Williams.
EUR/USD Rises
The Euro gained ground, surpassing the 1.1100 mark against the Dollar. This increase follows the Dollar’s continued weakness. On September 6, Germany will release its Balance of Trade figures and Industrial Production data. Additionally, the Eurozone will present its third estimate for Q2 GDP Growth Rate and final Employment Change figures.
GBP/USD Advances
The British Pound also rose, approaching the 1.3200 level. This increase aligns with the broader trend of Dollar weakness. The Halifax House Price Index and BBA Mortgage Rate will be announced on September 6.
USD/JPY Hits New Lows
The Yen gained strength as the Dollar fell, pushing USD/JPY to a four-week low below the 143.00 support level. This movement follows lower US yields and hawkish comments from a Bank of Japan official. Upcoming releases include Household Spending data and the preliminary Coincident Index and Leading Economic Index on September 6.
AUD/USD Shows Resilience
The Australian Dollar rebounded, staying above the 0.6700 level. This recovery is attributed to the Dollar’s weakness, rising commodity prices, and a cautious tone from Reserve Bank of Australia Governor Michele Bullock. On September 6, data on Home Loans and Investment Lending for Homes will be released.
Oil Prices Volatile
WTI crude oil prices hit a new low for 2024, approaching $68.80, but later recovered due to positive OPEC+ news and a bullish EIA report on US crude oil inventories.
Gold and Silver Prices Climb
Gold prices rose above $2,520 per ounce, continuing Wednesday’s gains. This increase is supported by the Dollar’s weakness and declining US yields. Silver also saw gains, reaching weekly highs above $29.00 per ounce and approaching key moving averages.
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