The Dollar regained its footing and made a strong comeback following Monday’s inconclusive price action amid the Labor Day holiday, advancing to two-week highs amid further weakness in risk-linked assets.
Here’s what you need to know on Wednesday, September 4:
The US Dollar Index (DXY) advanced further and flirted with the key 102.00 barrier as recession concerns reignited and despite falling US yields. The MBA weekly mortgage applications are scheduled for release on September 4, followed by the results of the Trade Balance, Factory Orders and the Fed Beige Book.
EUR/USD gained additional downside traction and fell below 1.1030 following a strong rebound in the Dollar. Final HCOB Services PMI is expected in Germany and the Euro bloc on September 4.
GBP/USD added to the ongoing bearish correction and broke the 1.3100 support to hit two-week lows. Final S&P Global Services PMI will be released on September 4.
The strong comeback of the Japanese yen dragged USD/JPY close to the 145.00 area after four consecutive daily advances. The final Jibun Bank Services PMI will be released on September 4.
The AUD/USD plunged over 1% and traded just a few pips from the key support at 0.6700, all in response to the stronger US Dollar, concerns over Chinese demand and persistent weakness around commodities. The Ai Group Industry Index and Judo Bank Final Services PMI are due on September 4.
WTI prices collapsed to the limits of the key $70.00 per barrel mark due to a possible deal in Libya, which could see local oil production and exports resume in the very near future.
Gold prices broke below the $2,500 per troy ounce mark to print fresh multi-day lows amid resumption of bullish bias in the US Dollar. Silver also saw its recent decline accelerate, deflating to three-week lows below the $28.00 per ounce mark.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
