A September rate cut is now eyeing US data releases

The greenback managed to regain composure and leave behind some of the recent multi-day move that was accentuated following Chairman Powell’s Jackson Hole speech. While a rate cut by the Fed in September seems largely priced in, there is still significant data that could either strengthen or undermine the move.

Here’s what you need to know on Tuesday, August 27:

The US Dollar Index (DXY) retreated to new lows near 100.50 earlier on Monday, only to reverse that move and return to near the 101.00 barrier later in the day. The Conference Board will release its consumer confidence indicator on August 27, followed by the FHFA’s Home Price Index.

The slight rebound in the greenback appears to have been enough to trigger a corrective swing in EUR/USD towards the 1.1150 area earlier in the week. On August 27, Germany’s final Q2 GDP growth rate will be released.

GBP/USD traded in a tight range, finally settling around the 1.3200 neighborhood following a steep multi-day advance. CBI Distributive Transactions will be published on August 27th.

USD/JPY alternated gains with losses after briefly dipping to three-week lows near 143.40 amid rising US yields and a decent rally in the US dollar. The next data release on the Japanese docket will be the final Coincident index and leading economic index on August 28.

The greenback’s return to upside momentum has fueled some selling pressure in the risk space, prompting AUD/USD to give up some of the sharp advance seen last Friday. The next key event in Australia will be the RBA’s monthly CPI Indicator due on 28 August.

Rising geopolitical concerns and the prospect of supply disruptions in Libya supported WTI prices’ continued rally above the $77.00 per barrel mark on Monday.

Gold prices traded away from recent record highs, holding trade above $2,500 a troy ounce amid rising geopolitical fears in the Middle East and hopes of interest rate cuts by the Fed in September. Silver prices breached the $30.00 per ounce mark to hit new six-week highs.