Financial Digest August 10: Dollar Under Pressure DXY 99.5–99.9, Gold Holds Highs Ahead of US CPI
Global markets start the week predominantly positively. Weak US labor market data has heightened expectations for a softer Fed policy, supporting stock indices and gold. Meanwhile, the oil market remains sensitive to
Global markets start the week predominantly positively. Weak US labor market data has heightened expectations for a softer Fed policy, supporting stock indices and gold. Meanwhile, the oil market remains sensitive to the situation around Iran and the Strait of Hormuz.
The American market at record highs amid soft Fed expectations
USA: Stock markets continue to rise: S&P 500 closed at 7,757.64 (+0.62%), Nasdaq rose to 26,690.62 (+1.30%), Dow Jones climbed to 54,036.93 (+0.28%). The driver was a reduction in US jobs by 23,000 in July, which eased concerns about a tight Fed policy.
Europe and Asia: Stoxx Europe 600 remains near historical highs, while DAX and FTSE 100 are trading consolidatively. In Asia, the dynamics are mixed: Japanese indices are rising on expectations of actions from the Bank of Japan, while Chinese markets are assessing fresh inflation statistics.
DXY Index Under Pressure in the Range of 99.5–99.9, 10-Year Yield at 4.65%
Currencies: The dollar remains vulnerable after a weak employment report. The DXY index is in the range of 99.5–99.9 points. The EUR/USD pair has stabilized around 1.1550, while USD/JPY is trading within 157.8–158.4.
Bonds: The yield on 10-year US Treasury bonds is consolidating around 4.65% as investors adjust their models for the Fed's interest rate trajectory.
Brent Fluctuates in the Range of $83–85, Gold Maintains Highs
Oil: Brent quotes are trading in the range of $83–85 per barrel. The main factor of volatility is the geopolitics of the Middle East and negotiations on maritime security through the Strait of Hormuz.
Gold: The precious metal maintains high positions, receiving support from the dollar's decline, correction of US bond yields, and high demand for safe-haven assets.
Key Events of the Day:
| Region | Event |
|---|---|
| Japan and China | Summary of opinions from the Bank of Japan, Japan's current account; lending volumes and M2 aggregate in China |
| Europe | Sentix investor confidence index, inflation in Norway/Denmark, industrial production in Sweden, Turkey, Netherlands |
| USA | Labor market trends index; reports from technology and aerospace companies after the close |
| Focus of the Week | Publication of the May/July US Consumer Price Index (CPI) |
Summary: The start of the week is marked by a weakening of expectations for further tightening of Fed policy. The American stock market remains near record levels, the dollar is under pressure, and gold maintains high demand. At the same time, the geopolitical situation around Iran and the Strait of Hormuz continues to determine the dynamics of the oil market.