Markets wait for direction as commodities send mixed signals

Frank Walbaum

Important News this week

Wed, 26th, 03:30 CET AU Consumer Price Index
Wed, 26th, 14:30 CET US Core PCE Price Index
Thu, 27th US Jackson Hole Symposium Begins
Fri, 28th, 14:30 CET CA Gross Domestic Product

Markets wait for direction as commodities send mixed signals

Markets remain without a clear direction, with the US Dollar moving sideways and investors waiting for fresh catalysts. Equities are also struggling to establish momentum, while Gold and Silver are beginning to correct after their recent gains. The next major impulse could come from today's US data and Nvidia earnings later today.

The Australian Dollar is showing relative strength following stronger-than-expected CPI data. While the stronger inflation reading may reduce expectations for near-term rate cuts from the RBA, the firmer AUD could also provide a small boost to broader risk sentiment. Crypto remains in a waiting pattern around important resistance levels, with Bitcoin and Ethereum yet to confirm another breakout.

The Canadian Dollar is weak across the board, while oil is starting to fall below important support levels. A sustained break lower in crude could add further pressure to CAD and potentially signal weaker risk sentiment, particularly if the move accelerates.

Market talk

Markets are clearly waiting for a catalyst. The Dollar is stuck sideways, metals are correcting and crypto is unable to break higher, while the AUD is providing one of the few positive signals. Today's developments could change that quickly.
Nvidia earnings are likely to be particularly important for the equity and tech markets. A strong result could reignite the risk-on move and help crypto break through resistance. On the other hand, continued weakness in oil and a stronger Dollar could reinforce the current cautious tone. With Jackson Hole starting tomorrow, traders may also be reluctant to make major bets before hearing from central bankers.

Tendencies in the markets

Equities mixed, USD sideways, BTC positive, ETH positive, oil lower, metals correcting, JPY weak.

Author

Frank Walbaum

GBP/USD edges lower below 1.3650, with eyes on US PCE data

GBP/USD trades with a negative bias below 1.3650 in the European session on Wednesday, eroding a part of the previous day's strong gains. The pair, however, remains within striking distance of a six-month top, set last Friday, as traders keenly await the release of the US Personal Consumption Expenditures (PCE) Price Index data for a fresh impetus.

EUR/USD holds lower ground near 1.1650 ahead of key US data

EUR/USD is holding lower ground toward 1.1650 in Wednesday's European session. The US Dollar is recovering modestly amid profit-taking and Middle East uncertainty. US inflation, tracked by the PCE, and another revision of Q2 GDP data should keep investors entertained on Wednesday.

Gold remains depressed below $4,650 on firmer USD; looks to US PCE for Fed rate outlook

Gold sticks to modest losses below $4,650 heading into the European session, though it lacks bearish conviction and remains confined within the previous day's broader range. The US Dollar regains positive traction amid some repositioning ahead of the US Personal Consumption Expenditures Price Index and is seen as weighing on the commodity. Adding to this, Federal Reserve Chair Kevin Warsh's remarks at the Jackson Hole Symposium on Friday might offer more cues about the interest rate path.

Dogecoin, Shiba Inu, Pepe: Profit-taking cools last week’s rally

Meme coins, including Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE), are losing their bullish momentum after last week’s double-digit gains. Facing downside pressure amid profit-taking, DOGE and PEPE risk further decline while SHIB holds at a support level.

US core PCE inflation set to keep pressure on the Federal Reserve to hike interest rates

The United States Bureau of Economic Analysis is expected to publish the Personal Consumption Expenditures (PCE) Price Index data for July on Wednesday, at 12:30 GMT. PCE inflation data for July is expected to reveal that price pressures remain high, well above the Fed’s 2% target.

Canada hits US goods with tariffs; The rate market sees a problem

On September 8, Canada begins charging its own importers 15%, 25% and 50% on roughly 700 lines of American goods. The measure is billed as dollar for dollar, and on the arithmetic of covered trade it is. What it is not is a tax on the United States.