Forex Today: Markets eye Powell fallout, US data, and RBA Minutes

Pablo Piovano FXStreet

The US Dollar (USD) regained some composure and managed to partially fade Friday’s post-Powell in quite a positive start to the new trading week. Investors’ attention, in the meantime, is expected to remain on the trade front and rising speculation of a September rate cut by the Federal Reserve.

Here's what to watch on Tuesday, August 26:

The US Dollar Index (DXY) clocked decent gains and reclaimed the 98.00 barrier and beyond as market participants digested Chief Powell’s dovish remarks at the Jackson Hole event. The Consumer Confidence gauged by the Conference Board will grab all the attention, seconded by Durable Goods Orders, the FHFA’s House Price Index, the Richmond Fed Manufacturing Index, and the API’s weekly report on US crude oil inventories.

EUR/USD kickstarted the week on the back foot, returning to the 1.1650 area, or daily lows, following the Greenback’s marked rebound. Next on the domestic docket will be Germany’s Consumer Confidence tracked by GfK on August 27.

GBP/USD traded on the defensive, coming under pressure and revisiting the sub-1.3500 zone. The BRC Shop Price Index will be released next.

USD/JPY resumed its uptrend, leaving behind Friday’s steep decline and challenging the mid-147.00s once again. The weekly Foreign Bond Investment figures will be the next event on the Japanese calendar on August 28.

AUD/USD navigated a tight range, breaking below the 0.6500 contention zone amid marginal gains. The RBA Minutes will be the salient event in Oz.

Crude oil prices extended their gradual ascent, briefly trespassing the $65.00 mark per barrel of American WTI against the backdrop of supply fears and geopolitical tensions.

The US Dollar’s decent gains and the rebound in US yields across the curve did not prevent Gold prices from adding to Friday’s gains and coming close to the $3,380 mark per troy ounce on Monday. Silver prices, in the meantime, set aside three daily advances in a row, retreating markedly following tops around $39.00 per ounce.

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Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.