Markets have remained mostly subdued throughout the week, apart from Monday’s sharp movements, as investors await crucial economic data releases.
Early on Wednesday, financial markets remained largely stable as traders were split on expectations regarding Federal Reserve rate cuts.
On Monday, the U.S. Dollar (USD) consolidated after a significant drop on Friday, which was driven by Federal Reserve Chair Jerome Powell’s cautious speech at Jackson Hole.
The Yen’s role as a risk barometer and the market’s paring of recent U.S. Dollar losses helped attract buyers, ending a two-week downtrend in USDJPY.
The U.S. Dollar Index (DXY) rose to its highest level in over a week, on track for its biggest weekly gain in three weeks, snapping a two-week downtrend.
The latest FOMC Meeting Minutes eased market concerns, showing that policymakers are sticking to a data-driven approach despite some pressure for more rate cuts.
The Reserve Bank of New Zealand (RBNZ) cut its official cash rate by 0.25%, in line with market expectations.
EURUSD and GBPUSD attempted to recover from a weak Monday, while the Japanese yen strengthened, pulling back USDJPY after its strong rally on Monday.
Despite no breakthrough from the meeting between U.S. President Donald Trump and Russian President Vladimir Putin, market sentiment remains slightly positive, mainly due to the lack of negative news.
Markets stay dicey early Friday as traders reassess fresh U.S. Producer Price Index (PPI)-driven inflation fears.
Trading sentiment remains mostly quiet as market participants await fresh clues to guide their next moves.
Markets stayed steady early Wednesday, reflecting a “calm after the storm” mood as traders reassessed moves after the United States (US) inflation report.
The AUDUSD drops for three straight days. EURUSD and GBPUSD both edged higher, with the British pound rising despite a mixed UK jobs report.
