The performance of the US dollar is deteriorating towards the end of the week when the market's focus is momentarily directed to the report of the minutes of the FOMC meeting published early this morning.
As expected, the dovish tone of the Federal Reserve (Fed) at the previous meeting further strengthened expectations for interest rate cuts to be implemented with job market indicators deteriorating.
The US dollar has fallen to its lowest level in more than 1 year by continuing the movement pattern from last week's close.
Next, the focus will shift to the Jackson Hole symposium event in Wyoming, United States (US) at the end of this week where the speech to be delivered by Fed Chairman Jerome Powell will be a critical indicator for the market.
The majority of the market expected a dovish tone delivered by Powell, but the details of the speech will have a different impact.
In addition, the focus will also be on the release of manufacturing and services PMI data for Europe and the US today.
The data reading for the month of August can also give an insight into the current health of the focus economy which will also affect market sentiment.
But analysts issued a cautionary warning to investors following concerns that China's situation as the world's second largest economy is faltering, could trigger a change in risk-off sentiment.
If the market sentiment returns to risk, the US dollar has the potential to regain strength in gold trading and is also likely to maintain the momentum of the continued surge.
