US Dollar Declines Following Dovish Comments From Powell, While Oil Prices Rise Due to Storm in the Gulf of Mexico
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1️⃣ Asian stock markets closed higher as investors digested Powell’s comments at the Jackson Hole Symposium last week.


1️⃣ USD declined as Powell said that the Fed would not be in a hurry to raise interest rates.

2️⃣ EUR/GBP: The risk-on environment and the surge of COVID-19 cases in Asia could boost demand on both currencies.

3️⃣ NZD slipped as New Zealand recorded 53 new cases, slightly lower than the previous day’s 83. New Zealand may consider tightening restrictions.

4️⃣ Positive markets put pressure on safe-haven currencies like the JPY.


1️⃣ Crude oil prices traded above the $ 68 a barrel level, due to a drop in oil supplies after several U.S. oil companies shut down their production due to a storm in the Gulf of Mexico.

2️⃣ Gold traded above the $ 1,800 level, amid weakness in the U.S. dollar after a dovish tone from Fed Chief Jerome Powell.

Economic Data Focus On Today

1️⃣ Eurozone Economic Sentiment for August (17:00 Malaysia Time) — Bearish Prediction — Dropped in German ZEW and IFO.

2️⃣ German Prelim CPI for August (20:00 Malaysia Time) — Bearish Prediction — Due to the recent drop in commodity prices.