A September rate cut now looks at US data releases

The Greenback managed to regain composure and leave behind part of the recent multi-day bearish move, which was accentuated following Chair Powell’s speech at Jackson Hole. While an interest rate cut by the Fed in September looks largely priced in, there are still significant data releases that could either reinforce that move or undermine it.

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

The US Dollar Index (DXY) retreated to new lows near 100.50 earlier on Monday, just to reverse that move and rebound to the proximity of the 101.00 barrier later in the day. The Conference Board will publish its Consumer Confidence gauge on August 27, seconded by the FHFA’s House Price Index.

The Greenback’s mild rebound seems to have been enough to spark a corrective knee-jerk in EUR/USD to the 1.1150 zone at the beginning of the week. On August 27, the final Q2 GDP Growth Rate in Germany is due.

GBP/USD traded within a tight range, eventually settling around the 1.3200 neighbourhood following a multi-day steep advance. The CBI Distributive Trades will be published on August 27.

USD/JPY alternated gains with losses after briefly dropping to three-week lows near 143.40 on the back of rising US yields and a decent bounce in the US Dollar. The next data release on the Japanese docket will be the final Coincident Index and Leading Economic Index on August 28.

The resurgence of the upside impulse in the Greenback favoured some selling pressure in the risk-associated space, motivating AUD/USD to give away some of its sharp advance seen last Friday. The next key event in Australia will be the RBA’s Monthly CPI Indicator, due on August 28.

Escalating geopolitical concerns and prospects of supply disruptions in Libya underpinned the continuation of the rebound in prices of WTI beyond the $77.00 mark per barrel on Monday.

Gold prices traded at shouting distance from their recent record levels, maintaining the trade above the $2,500 mark per ounce troy amidst rising geopolitical fears in the Middle East and hopes of rate cuts by the Fed in September. Silver prices surpassed the $30.00 mark per ounce to clinch new six-week highs.