ArticlesWeekly Analysis

The wave of violent volatility continues to dominate the performance of the markets

The dollar retreated from a two-decade high against the euro on Tuesday after data showed that private sector activity in the United States was weaker than expected in August, raising bets that the Federal Reserve may be less hawkish in its cycle of interest rate increases.

The dollar index, which measures the value of the greenback against a basket of six competing currencies, fell 0.376 percent to 108.58 at 1930 GMT. Earlier, the index touched 109.27, its strongest level since hitting a two-decade peak in mid-July.

Traders are now calculating a 47.5 percent chance of the US central bank raising interest rates by 50 basis points in September and a 52.5 percent chance of a 75 basis point increase.

But that could change when Federal Reserve Chairman Jerome Powell speaks on Friday in Jackson Hole, where central bankers from around the world will gather for the Fed’s annual economic seminar.

The euro rose 0.19 percent against the greenback to $0.99625, recovering from a two-decade low of $0.99005, which it plunged to earlier in the session on renewed fears that the energy shock will continue to fuel inflation, which makes it more likely that Europe will slip into recession. .
Oil prices returned to violent fluctuations, as prices gave up their huge rally towards the rise during trading today, Wednesday, before the release of US oil inventories data, coinciding with the easing of concerns about the upcoming OPEC decision to cut production.

And after strong and surprising rises yesterday, following expectations regarding the direction of OPEC Plus to reduce production at the next meeting, if an agreement was reached with Iran regarding reviving the nuclear agreement, and it led to an increase in supply, prices returned to decline.
Brent crude, the benchmark, is trading during these moments of trading today, Wednesday, near the levels of $100 a barrel, after going down for a temporary period to levels of $99.7 a barrel.

While the US light NYMEX crude is trading during these moments of trading today, Wednesday, near the levels of 39.9 dollars per barrel, with a slight increase that does not exceed 0.1 dollars, after retreating to levels near the 93 dollars per barrel.

And oil prices had risen by the end of trading yesterday, Tuesday, as the benchmark Brent crude rose 3.9% to $100.22 a barrel, and the US West Texas crude rose 3.7% to $93.74.
Gold prices rose at the close of trading today, Tuesday, after 6 consecutive sessions of losses, and the precious metal received support from the decline in the US dollar, as well as the decline in the yield on treasury bonds after weak economic data. And spot gold contracts rose 0.6% to $ 1746.14 an ounce, after falling yesterday, Monday, to $ 1727.01 an ounce, the lowest level since the twenty-seventh of July. And US futures contracts for the yellow metal closed 0.7% higher at $1,761.2 an ounce. Business activity in the US private sector declined for the second month in a row in August, and recorded its lowest level in 18 months. Meanwhile, the dollar index fell by 0.5%, which contributed to reducing the value of gold among buyers in global markets, while the decline in US bond yields attracted more demand for the precious metal. On the other hand, spot silver contracts rose 0.26% to $19.06 an ounce, platinum prices rose 0.5% to $879.94 an ounce, while palladium declined 0.8% to $179.69 an ounce.

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