The US Dollar weakened despite previous gains, as investors reassessed global yield movements and a softening US labor market. The US Dollar Index (DXY) dropped toward the 98.00 level, pressured by bearish sentiment ahead of a busy economic calendar, including jobless claims, PMI data, and a speech by Fed’s Williams. Gold surged to a record high above $3,570 per ounce, marking its seventh consecutive day of gains. Silver also broke through the $41.00 level for the first time since 2011, fueled by expectations of a potential Fed rate cut amid slowing economic indicators. EUR/USD rebounded to the 1.1680 level as the eurozone gears up for retail sales data and Germany’s Construction PMI. GBP/USD also recovered, nearing 1.3450 ahead of the BoE’s DMP survey and UK PMI reports. In Asia, USD/JPY reversed course after hitting multi-week highs above 149.00, with Japan’s bond investment data in focus. AUD/USD extended its recovery beyond 0.6500 ahead of Australia’s trade and spending data. Meanwhile, crude oil prices dropped below $64.00 per barrel of WTI, with traders eyeing a possible OPEC + output hike. With markets awaiting key US economic releases, volatility is expected to remain high across commodities and currencies.
Dollar Dips as Rate Cut Bets Grow
