English 
Dutch - Nederlands
French - Français
German - Deutsch
Greek - Ελληνικά
Hungarian - Magyar
Italian - Italiano
Polish - Polski
Spanish - Español
Get in touch
- Home
- Getting Started
Get in touch
iFOREX Europe uses cookies to improve your browsing experience, personalize ads, analyze traffic, and ensure security. For more information, please visit our Cookie Policy or go to Manage preferences.
20/08/2024 - 07:24 UTCThe U.S. Dollar (USD) faced pressure on Monday, slipping to its lowest level since January, with the U.S. Dollar Index (USDX) ending the session 0.58% lower, hovering around 102.20. This decline followed a pullback in U.S. Treasury yields, as investors anticipated clearer signals on the Federal Reserve's policy direction.
Fed officials have expressed concern about the potential for easing monetary policy, particularly as the U.S. economy continues to grow above trend. This suggests that the market may be overestimating the likelihood of aggressive future rate cuts.
All eyes are now on Fed Chair Jerome Powell’s upcoming remarks at the Jackson Hole Symposium on Thursday, where investors hope to gain further insight into the central bank’s outlook.
U.S. stocks advanced on Monday, extending gains from the previous week, which saw the largest percentage increase of the year. Investors turned their attention to the Democratic National Convention and the upcoming Jackson Hole Economic Symposium.
The tech-heavy Nasdaq led the three major U.S. stock indexes to a higher close, buoyed by strong performances from Nvidia, Microsoft, and Alphabet. Among individual stocks, Advanced Micro Devices climbed 4.5% after announcing plans to acquire server maker ZT Systems for $4.9 billion, a move aimed at expanding its artificial intelligence portfolio to better compete with Nvidia.
On the energy front, Oil prices edged lower on Monday, continuing recent losses as traders reacted to reports of progress towards an Israel-Hamas ceasefire, leading to a reduction in the risk premium on crude. Additionally, concerns over weak demand, particularly from China, the world's largest oil importer, kept crude prices subdued.
The uncertainty surrounding Middle East supply was compounded by these demand fears. Further weighing on the market, China’s central bank decided to keep its benchmark loan prime rate unchanged on Tuesday, following an unexpected rate cut in July.
Market participants are also watching for more economic signals from the U.S. this week, with Fed Chair Jerome Powell set to speak at the Jackson Hole Symposium on Friday.
The EUR/USD pair climbed by more than a half a percent on Monday as investors began the new trading week with a renewed appetite for risk.
This rally comes amid a backdrop of mixed U.S. economic data, which had previously sparked concerns of a looming recession.
However, recent positive data has helped ease those fears, with investors now closely watching for any indications of upcoming rate cuts from the Federal Reserve (Fed).
As the week progresses, market participants are gearing up for a series of key events, including the release of Purchasing Managers' Index (PMI) data from both the Eurozone and the U.S., along with the highly anticipated Jackson Hole Economic Symposium. These events are expected to significantly influence market sentiment, beginning on Thursday.
In the Eurozone, the HCOB PMI figures for August are projected to show slight improvement. The Manufacturing PMI is anticipated to edge up to 46.0 from 45.8, while the Services PMI is expected to remain steady at 51.9.
Gold prices remained subdued on Monday after briefly surpassing the $2,500 mark in the previous session, as investors took profits from the historic rally and adjusted their positions ahead of key signals from the U.S. Federal Reserve and developments in the Middle East.
Market attention is now shifting to the minutes from the Fed's last policy meeting, set for release on Wednesday, and Fed Chair Jerome Powell's upcoming speech at the Jackson Hole Economic Symposium on Friday.
Oil prices fell sharply on Monday as hopes for successful peace talks in the Middle East reduced supply risks, while ongoing economic challenges in China threatened to curb demand.
U.S. Secretary of State Antony Blinken stated on Monday that Washington’s latest diplomatic efforts to secure a ceasefire in Gaza represent "probably the best, maybe the last opportunity" for peace, urging all parties to finalize the agreement.
Adding to the bearish sentiment, China's ongoing economic difficulties also weighed on oil prices. Last week, data showed new home prices in China falling at their fastest pace in nine years, while Chinese refineries significantly reduced crude processing rates in response to weakening fuel demand.
U.S. stocks continued their upward momentum on Monday, building on last week's strong gains, as investors turned their attention to the Democratic National Convention and the upcoming Jackson Hole Economic Symposium.
The tech-heavy US Tech 100 led the charge among the three major U.S. stock indexes, buoyed by strong performances from Nvidia, Microsoft, and Alphabet.
The Jackson Hole Economic Symposium kicks off on Thursday, with Fed Chair Jerome Powell's speech on Friday being closely watched for insights into the central bank's potential shift from restrictive to neutral monetary policy.
The materials contained on this document should not in any way be construed, either explicitly or implicitly, directly or indirectly, as investment advice, recommendation or suggestion of an investment strategy with respect to a financial instrument, in any manner whatsoever. Any indication of past performance or simulated past performance included in this document is not a reliable indicator of future results. For the full disclaimer click here.
By