Market sentiment remains slightly positive despite a lack of major catalysts as traders defend China-linked optimism amid hopes of witnessing a sooner end to the restrictive monetary policies.
The cautious optimism joins downbeat Treasury bond yields to weigh on the US Dollar, which in turn enables commodities and Antipodeans to edge higher.
That said, GBPUSD stays firmer for the second consecutive day despite witnessing downbeat UK inflation clues versus the hawkish commentary from BoE officials.
However, the EURUSD struggles to defend the week-start rebound as German consumer sentiment figures deteriorate. Furthermore, AUDUSD and NZDUSD cheer China-related hopes of more stimulus whereas USDCAD fails to benefit from softer Oil prices.
Elsewhere, Gold Price remains firmer but Oil struggles to extend the previous day’s retreat from the weekly high as commodity traders remain cautious ahead of US data.
Talking about the cryptos, the top-tier digital assets remain depressed amid fears of more volatility in the Bitcoin and Ethereum prices, as well as fears of harsh regulations.
Following are the latest moves of the key assets:
Amid a lack of major catalysts and the traders’ need for more to confirm the hawkish comments of major central bankers rolled out at Jackson Hole, the markets remained in consolidation mode during early Tuesday. In doing so, the traders also remain unsure of the China-linked optimism as economic fears surrounding Beijing and Germany prod the global recovery from COVID. Elsewhere, mixed catalysts about the UK inflation conditions and hawkish BoE statements, as well as fears of a recession in Britain, prod the GBPUSD pair’s recovery.
It’s worth noting that the UK traders’ return after a long weekend joins the broad US Dollar weakness to lure the Cable buyers while preparing for the US Consumer Confidence and housing data.
Having witnessed downbeat prints of the German consumer sentiment gauge, the market players will keep their eyes on the US CB Consumer Confidence, Housing Price Index and JOLTS Job Openings to gain a better view of the market. However, the optimists need validation from this week’s US inflation and employment data to keep control.
May the trading luck be with you!