US Dollar Index Fell in the Short Term!

Recap of yesterday’s market movement: 

On Wednesday (Aug 24) The U.S. dollar index has drop to 108.274 (-0.70%) The dollar fell in the short term as the US durable goods orders were lower than expected, which proved to reduce US consumer sentiment and deepened the extent of the Federal Reserve’s slowdown in raising interest rates. Gold has rise to 1755 (+0.77%) As U.S. economic data began to gradually come under pressure, yields on U.S. government bonds began to fall, and the dollar was also under pressure, making gold rally. US Crude Oil has continue rise to 95.334 (+2.85%) Saudi Arabia floated the idea of an OPEC+ production cut, causing the crude oil continue to rise. US Stock indexes price closed above, SP500 rise to 4157 (+1.15%), NASDAQ rise to 12997 (+1.45%) Boosted by gains in energy and Intuit shares, Accounting software maker Intuit closed up nearly 4 percent after its upbeat fiscal 2023 revenue forecast and boosted the tech heavy NASDAQ. As Cryptocurrency strong correlation with the stock indexes, causing Bitcoin continue rise to 21900 (+3.64%).

Important Economic Data Calendar

• ECB Monetary Policy Meeting Accounts 
• U.S Prelim GDP q/q

As Europe’s inflation rate will continue to rise, and Russia may stop supplying natural gas to Germany. Europe may face an energy crisis in the future. Therefore, the ECB will continue hawkish statement to pressure on EUR pairs. 

U.S. GDP fell into negative territory for two consecutive quarters, the market expected the economy to enter a recessionary cycle. But U.S. job demand remained strong and tempered recessionary sentiment. Therefore, if this data goes negative again, the Fed will slow down the rate hike and will put pressure on the dollar.