Lack of enthusiasm indicates some consolidation

There was no cheer for the greenback on Tuesday as sellers regained control amid a general lack of fervor among market participants ahead of the release of key US data later in the week. Sterling outperformed its risk-on peers amid a persistently tight stance from the BoE.

Here’s what you need to know on Wednesday, August 28:

The US Dollar Index (DXY) quickly gave back Monday’s advance and refocused lower, where recent YTD lows lie. Weekly MBA results on mortgage applications will be released on August 28, supported by the EIA report on US crude oil inventories and Waller’s FOMC speech.

EUR/USD regained its upward traction and partially mitigated the negative start to the week. On August 28, the ECB will publish M3 money supply figures along with data on loans to companies and loans to households.

GBP/USD climbed to more than two-year highs near 1.3250, supported by expectations that the BoE will not cut rates as much as markets anticipated this year. There will be no channel data on August 28.

USD/JPY kept the downtrend well in place and challenged the key support at 144.00 again. The Coincident Index and the Leading Economic Index will come on August 28.

AUD/USD kept trading in the area of ​​recent highs, although testing or breaking the 0.6800 barrier remained elusive. The RBA’s monthly CPI will be due on 28 August.

WTI pulled back sharply and snapped a three-day streak of gains amid renewed demand concerns and some profit-taking in light of the recent sharp rally.

Gold prices alternated between gains and losses above the region of $2,500 per troy ounce amid investor caution ahead of the US PCE release. Silver prices rose slightly and remained close to the $30.00 per ounce mark.