The US dollar (USD) outperformed its peers on Thursday, gaining additional momentum thanks to solid data releases and steady caution ahead of Chairman Jerome Powell’s key speech at the Jackson Hole Symposium on Friday. So far, consensus continues to favor a September interest rate cut.
The US Dollar Index (DXY) traded significantly higher on Thursday, retesting multi-day highs around 98.70 amid a resurgence in US yields across the curve and stronger data. Powell’s speech at the Jackson Hole meeting will be a key focus as investors continue to assess the Fed’s potential interest rate path in the second half of the year.
WTI oil prices failed to maintain their initial weekly high near $63.50, ultimately succumbing to selling pressure despite signs of stronger demand in the US and stabilizing geopolitical uncertainty. Gold prices managed to reach a three-day high just above $3,350 per troy ounce, although the move eased afterward, leaving the precious metal with marginal losses for the day. Silver prices extended their recovery on Wednesday, rising to a two-day peak just above $38.00 per ounce.
GBP/USD is extending its ongoing weakness, approaching a key resistance area around 1.3400. The GfK Consumer Confidence Indicator will be the only data release across the Channel. Further fluctuations have seen USD/JPY reverse two consecutive daily declines and surpass the key 148.00 level amid strong gains. The key inflation rate will be a key event on the domestic agenda. AUD/USD weakened further and is approaching the 0.6400 support zone, a two-month low. Next up in Australia is the release of the RBA Minutes on August 26.