The US Dollar Index (DXY) fell to fresh five-day lows, breaching the 109.00 support level, as market participants appeared to bet on a potential Federal Reserve rate cut later this month. Investors are now closely monitoring key data releases, including Retail Sales, Initial Jobless Claims, Import/Export Prices, the Philly Fed Manufacturing Index, Business Inventories, and the NAHB Housing Market Index.
The Euro (EUR/USD) surged above the 1.0300 mark following initial USD weakness, though the momentum soon faded, resulting in modest losses for the pair by the end of the session. Eyes are now on Germany’s final inflation reading and the Eurozone’s trade balance, alongside the release of the European Central Bank’s (ECB) accounts.
Meanwhile, the British Pound (GBP/USD) extended its rally for the third consecutive day, briefly surpassing the 1.2300 threshold after another day of declines in the Greenback. A packed UK economic calendar on Thursday will feature GDP data, Industrial and Manufacturing Production, Construction Output, and the Balance of Trade.
In Asia, the Japanese Yen (USD/JPY) retreated sharply to four-week lows below 156.00, driven by the dollar’s pullback and a drop in US yields across the curve. Japan’s Producer Prices are expected to be a focal point in the coming days.
Risk assets also saw a positive session, with the Australian Dollar (AUD/USD) rising to six-day highs near 0.6250. Market participants will be paying close attention to the upcoming Australian labor market report.
Crude oil prices (WTI) continued their upward trajectory, approaching recent highs just above $79 per barrel.
Gold prices traded constructively, supported by the US dollar’s retreat and a pullback in US yields, hovering around $2,700 per ounce on Wednesday. Silver also gained momentum, extending Tuesday’s rally and surpassing the crucial $30 mark per ounce.
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