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MTrading Team • 2023-08-24

EURUSD stays indecisive ahead of key data, central bankers’ speeches

EURUSD stays indecisive ahead of key data, central bankers’ speeches

Traders remain cautiously optimistic amid hopes of witnessing a sooner end to the hawkish monetary policies at the major central banks, backed by the activity data for August. Adding strength to the slightly positive outlook could be the downbeat yields and the US-China news.

However, the US Dollar recently began picking up bids to reverse the previous day’s U-turn from a two-month high. The same prods the commodity buyers while flashing mixed results for the major currencies and Antipodeans.

EURUSD remains indecisive as US and Eurozone PMIs flash downbeat prints and the traders await Jackson Hole's speeches. That said, GBPUSD prints mild losses as UK recession woes amplify while NZDUSD drops the most among the top-tier currency pairs.

Elsewhere, Gold Price jumps to a two-week high but crude oil drops for the fourth consecutive day.

BTCUSD and ETHUSD register mixed moves as Ethereum appears to gain an advantage over the Bitcoin allure amid industry news.

Following are the latest moves of the key assets:

  • Brent oil drops for the fourth consecutive day to $82.80 by the press time.
  • Gold price flirts with the highest level in two weeks, around $1,920 at the latest.
  • USD Index picks up bids to reverse the previous day’s pullback from 10-week high.
  • Wall Street benchmarks closed in the green and so did the stocks in the Asia-Pacific zone. That said, equities in Europe and UK print mild gains as we write.
  • BTCUSD remains mildly bid around $26,500 but ETHUSD holds lower grounds near $1,670 by the press time.
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Mixed sentiment allows traders to brace for frontline data/events

While the PMI-induced positive mood fades during early Thursday, the cautious mood ahead of US Durable Goods Orders and second-rank central bankers’ speeches at the Jackson Hole prods the risk aversion to gain momentum. Additionally, optimism about the technology shares and downbeat yields add strength to the cautious optimism but fail to tame the US Dollar on traders fear of Fed Chair Jerome Powell’s likely defense of hawkish policies on Friday.

Elsewhere, a likely improvement in the US-China ties and BRICS rejection of dedollarization also allow the Greenback to edge higher, especially amid the latest rounds of hawkish Fed talks.

It should be noted that the crypto markets appear indecisive as the US SEC is expected to allow an early rollout of ETH ETFs but can keep the reins in tight control for Bitcoin. Furthermore, options positions and the on-chain data also struggle to favor the crypto buyers.

  • Strong buy: USDCAD
  • Strong sell: ETHUSD, GBPUSD, Gold
  • Buy: USD Index, Nasdaq, USDJPY

US data, Jackson Hole to offer busy days ahead…

The aforementioned risk catalysts and the bond market moves are the likely important factors to watch for clear directions for trading. Among them, US Durable Goods Orders, second-tier housing and activity data, as well as the central bankers’ speeches, will be crucial for fresh impetus. Should the central bankers defend hawkish bias the previous day’s risk-on mood could be reversed and the same can favor the US Dollar to refresh the multi-day high.

May the trading luck be with you!