A September rate cut now eyes US data releases

The greenback managed to regain its composure and put behind it some of the recent multi-day bearish movement that was accentuated after Chairman Powell’s speech in Jackson Hole. While a Fed rate cut in September appears to be largely priced in, there are still key data releases that could either amplify or undermine that movement.

Here’s what you need to know on Tuesday, August 27:

The U.S. dollar index (DXY) fell to new lows near 100.50 earlier on Monday, before reversing that move later in the day and recovering near the 101.00 barrier. The Conference Board releases its Consumer Confidence gauge, supported by the FHFA’s House Price Index, on Aug. 27.

The mild rebound in the Greenback seems to have been enough to trigger a corrective knee-jerk reaction in EUR/USD towards the 1.1150 zone at the start of the week. The final Q2 GDP Growth Rate in Germany is expected on August 27.

GBP/USD traded in a narrow range and eventually stabilized around the 1.3200 area after a steep multi-day rise. The CBI Distributive Trades will be published on August 27.

USD/JPY traded gains and losses after briefly dropping to three-week lows near 143.40 on the back of rising US yields and a decent rebound in the US dollar. The next data release on the Japanese dossier will be the latest Coincident Index and Leading Economic Index on August 28.

The revival of the upward momentum in the greenback has encouraged some selling pressure in the risk-associated space, which has motivated AUD/USD to give away some of last Friday’s sharp rise. The next major event in Australia will be the RBA’s monthly CPI indicator, which is due on August 28.

Rising geopolitical concerns and the prospect of supply disruptions from Libya pushed WTI prices further above the $77.00 per barrel mark on Monday.

Gold prices traded within shouting distance of their recent record highs, holding steady above $2,500 per troy ounce amid rising geopolitical fears in the Middle East and hopes of Fed rate cuts in September. Silver prices breached $30.00 per ounce to hit fresh six-week highs.