#marketoverview #stockmarket #19aug2024 #forexmarket #gold #eurusd
Dijo David Baisal
Investment Consultant | Senior Business Development Manager at Star Trader | Forex, Stocks, Real Estate & Wealth Management Expert | Helping Clients Maximize Returns & Manage Risks Across Global Markets
Traders and investors are taking a little break today as stock futures in the US and Europe show no clear direction. This is because last week, the US and European equity markets performed tremendously. The stock indices over in the US, especially, the NASDAQ INDEX, invited many new investors as the sell-off that happened at the beginning of this month was considered an opportunity to bag a bargain. This week is important for traders because of important economic data and the FOMC Meeting Minutes due on Wednesday.
Gold Hits All-Time High
Gold (XAU) climbed by 2% on Friday, reaching an all-time high. Strong demand for safe-haven assets fueled the rally as markets assessed the Federal Reserve's monetary policy outlook. The geopolitical uncertainty of Gaza and the Russia-Ukraine war will likely support XAU/USD prices in the medium term. Gold's long-term bullish trend remains supported by several factors: Persistent global economic uncertainty, Geopolitical tensions, Inflation hedging, accommodative central bank policies, and a weaker US dollar (USD).
Euro Climbs as Looming US Rate Cuts Drive Global Position
EUR/USD Continues to Rise in Anticipation of Potential US Rate Reductions On Friday, the euro (EUR) was bullish for the entire trading session, finishing the day with 0.51% gains. Federal Reserve (Fed) officials Mary Daly and Austen Goolsbee have expressed the possibility of a monetary policy easing in September.
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GBP Rises on Strong U.K. Data and Fed's Dovish Messages.
The British pound (GBP) surged by 0.72% against the US dollar (USD) on Friday as the greenback weakened on growing expectations for an interest rate cut from the Federal Reserve (Fed) in September. Thus, GBP/USD will likely remain under bullish pressure as long as the pair continues to move above the 1.29400 level.
This week will be important for the Japanese Yen, with BOJ Governor Ueda speaking before Parliament on August 23. Additionally, on August 22, we’ll see the release of the CPI, which is expected to show a 2.7% year-over-year increase, slightly down from 2.8% last month.