- Markets on Hold: The Dollar Under Pressure
- Yen Strengthens, Oil Under Pressure
- Gold Stable, Markets at a Turning Point
This week, global markets are on hold in anticipation of significant economic data releases from the United States, causing noticeable tension among investors.
Markets on Hold: The Dollar Under Pressure
Global stock markets are in standby mode as investors await the release of two key US indicators: the ISM manufacturing activity index and non-farm employment data. These numbers are vital for assessing the health of the American economy and predicting the Federal Reserve's (Fed) next moves in monetary policy. Currently, global stocks remain stable, just below their record highs, while the dollar stays high, close to a two-week peak. Traders are cautious: yields on ten-year US Treasury bonds have slightly declined, indicating growing nervousness in the markets.
Yen Strengthens, Oil Under Pressure
Meanwhile, the Japanese yen is strengthening against the dollar, driven by speculations of a potential interest rate hike by the Bank of Japan (BoJ). Contrarily, in the US, rate cuts are increasingly anticipated. The yen, traditionally seen as a safe haven, attracts investors seeking stability in the face of rising uncertainty. At the same time, the oil market is experiencing a phase of decline. After a marked rise in August, crude prices are once again under pressure, weighed down by persistent concerns about global demand. Geopolitical tensions, particularly in Libya, have not been enough to sustain oil prices, which continue to struggle at lower levels.
Gold Stable, Markets at a Turning Point
Gold continues to play its role as a safe haven, maintaining high levels despite ongoing volatility. Much will depend on how investors react to the upcoming US data. Financial markets are at a turning point, closely watching every move of the dollar, whose resilience will be tested by the economic data releases.
Caution is advised for investors as the world eagerly awaits these key indicators, which could be a pivotal moment for financial markets.
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