The US dollar was seen to stabilize again in the trading session yesterday, after trading weak for three consecutive sessions, as market players are now focused on the speech of the Chairman of the Federal Reserve, Jerome Powell, at the Jackson Hole symposium scheduled to take place this Friday.
The Spot Dollar index market is seen to have risen slightly after the recent decline, which at the same time interprets that the market sentiment is temporarily cautious awaiting the clarification of the statement on the Fed's stance on interest rate cuts.
Powell's speech is expected to provide important statements regarding the exact timing and duration of rate cuts.
In addition, market players are also seen to pay attention to the US wage benchmark revision report in the coming week and also the August employment survey data, where it is seen to be able to challenge the US labor market which is seen to be strong at this point.
Elsewhere, the 10-year US Treasury bond yield remained steady after a recent six-basis point decline, while Brent crude oil prices fell for a third straight day amid unrest over a possible ceasefire in Gaza.
In addition, market players' increasing concerns about global demand also put pressure on the crude oil market. Meanwhile, gold prices surged to new highs yesterday, following continued demand for gold as a hedge asset amid economic uncertainty and geopolitical pressure.
Analysts at SARACEN MARKETS advise to be cautious about the possible rise of the US stock market in the short term followed by a large "correction" phase in the August-October period.
We are entering a period where there is a possibility of "liquidity" happening to the market while traders' positions are recorded in "futures markets", and sentiment seems to be getting more fragile. We suspect and think that a 'bull trap' might happen, however we hope this opinion is just speculation.
