Forex Today: Attention shifts to US ISM, JOLTS and inflation in Europe

The US Dollar (USD) has faded part of Friday’s strong advance despite the geopolitical landscape seeming to have deteriorated a tad in the last few days, while market participants appear to have already digested the hawkish remarks from Chair Warsh in Jackson Hole.

Here is what you need to know on Tuesday, September 1:

The US Dollar Index (DXY) has started the week on the back foot, breaking below 99.50 amid the mixed performance of US Treasury yields and steady geopolitical concerns. Next on tap will be the release of the ISM Manufacturing PMI, seconded by the JOLTs Job Openings and the final S&P Global Manufacturing PMI.

EUR/USD has left behind part of the recent sharp retracement, regaining the area above 1.1600 the figure on the back of the fresh selling interest hurting the buck. The publication of the preliminary Inflation Rate in the Euroland will take centre stage alongside Retail Sales in Germany.

GBP/USD has reversed three consecutive daily pullbacks and regained the smile, managing to retest the 1.3550-1.3560 band on Monday. A busy docket across the Channel will see the Nationwide Housing Prices, the BRC Shop Price Inflation, the final S&P Global Manufacturing PMI, Mortgage Approvals/Lending and Net Lending to Individuals figures.

USD/JPY has come under fresh downside pressure, reversing a multi-day positive streak and returning to the 159.50 region following an early move past the key 160.00 barrier. The final S&P Global Manufacturing PMI is due, seconded by Capital Spending prints and the Consumer Confidence gauge.

AUD/USD has met contention near 0.7150, managing to advance modestly and partially offset Friday’s marked decline. The final S&P Global Manufacturing PMI will see the light followed by Q2 Current Account results, Building Permits and Private House Approvals.

Prices of WTI advanced to six-day highs near the $87.00 mark per barrel on the back of the unabated effervescence in the Middle East.

Gold has come under pressure, briefly breaching below the $4,400 mark per troy ounce before attempting a tepid bounce afterwards. The yellow metal has remained on the defensive despite the US Dollar’s offered stance, Middle East concerns and mixed US Treasury yields across the spectrum.