Gold Price Updates Minimum of the Year Against the Background of Rising Yields of US Govt Bonds

Treasury yields are rising, especially for long-term periods. For example, the yield on 10-year bonds today is 4.28%, and a month ago it was 3.88%, a year ago, 3.02%. Barron's writes that yields may continue to rise amid sustained inflation.

Another Rough Week for Australian Dollar

The Australian dollar is steady at the start of the new trading week. In the European session, AUD/USD is unchanged at 0.6404. It’s a very quiet week for Australian releases, with no tier-1 releases. On Wednesday, Australia releases services and manufacturing PMIs for August. Services and manufacturing both contracted in July, with readings below the 50.0 level.

German PPI's Sharp Drop Lifts Peak-Rates Hopes

The sharp fall in German producer prices is both a signal of easing inflationary pressures and a warning of a sharp slowdown in demand.

Sunset Market Commentary

After a risk-off trend almost uninterruptedly set the tone for global trading since end July, little/no news this time proved good enough to trigger a cautious countermove in equities and in FX. US and European markets even ignored a fragile sentiment in Asia after Chinese banks reduced lending rates less than expected, proving less support to the economy than hoped for.

EUR/USD: The Jackson Hole Dollar Playbook

The fate of the dollar will not solely depend on what Fed Chair Powell says at Jackson, but on several other factors. Will Nvidia’s earnings reignite the AI trade and provide much needed relief to tech stocks? How much additional support will we see from China? Is ECB President Lagarde ready to show which way she is leaning towards for the September meeting? Finally, will the global flash PMIs show that rate hiking cycles are starting to bring down the service sector?

Overnight Risk Sentiment Generally Positive With China Exception

Overnight risk sentiment is generally positive with China exception to the rule. The PBOC’s CNY fixing deviated again big time compared to expectations as the central bank tries to slow the currency’s descent. USD/CNY has been toying with the 7.30 2022 high for the past couple of sessions. Core bonds tread water with the dollar slightly in the defensive.

Japanese Yen Rises as Inflation Higher than Expected

Earlier today, Japan released BoJ core inflation, one of the central bank’s preferred inflation indicators. Inflation reports used to be rather dull events when Japan experienced deflation. That has all changed now in the era of high inflation across the globe. Japan’s inflation is relatively low at 3% to 3.5%, but it has persistently been above the Bank of Japan’s 2% target and has raised expectations that the BoJ might have to tighten policy.

GBP/USD – Consolidation Continues Amid Promising Inflation Numbers for UK

The pound has continued to trend higher against the dollar over the last week or so having corrected quite considerably since the middle of last month.

China Surprises With Rate Cut, US Retail Sales in Focus

China’s central bank hijacked the headlines on Tuesday morning after unexpectedly reducing a key rate by the most since 2020 to shore up its weak economy. However, Asian markets displayed a mixed reaction with sentiment whacked by a barrage of disappointing China data published after the rate decision.

GBP/USD Analysis: The Pound Trying to Grow on News from Labor Market

As the daily chart shows, the GBP/USD rate dropped to the border of the ascending channel, which is valid in 2023, and seems to have found support there — as a candle with a long lower shadow was formed yesterday. Buyers quickly snapped up the fall, showing strength of demand around the 1.266 support line, which is also being strengthened by the 100-day moving average.