The financial markets are poised for a week of significant developments, with a range of economic indicators set to influence trading dynamics. The release of the Inflation Rate takes the spotlight, potentially shifting market sentiments. This comes as Federal Reserve Chair Jerome Powell is scheduled to provide another crucial testimony. Meanwhile, the global markets have largely shrugged off concerns over new tariffs, which took effect late Monday night.
Late Monday evening saw the imposition of 25% levies on steel and aluminum imports. This development was anticipated to rattle global stock markets; however, investors remained unperturbed, brushing aside tariff fears. The US Dollar Index (DXY) revisited the 108.00 support level, showcasing resilience amidst these changes.
In currency markets, USD/JPY continued its recovery trajectory, while AUD/USD gained upward momentum, nearing the key 0.6300 resistance zone. Silver prices faced headwinds, trading defensively as commodity markets adjusted to new economic data. Meanwhile, WTI prices marked their third consecutive daily gain, reflecting robust demand in the energy sector.
This week also marks the release of several pivotal reports and data sets. The MBA Mortgage Applications will offer insight into the housing market's current state, while Home Loans figures and Investment Lending for Homes are expected to be a focal point for investors. Additionally, the EIA's weekly report on US crude oil inventories will provide further clarity on supply dynamics.
Chair Powell's upcoming testimony could offer critical insights into the Federal Reserve's policy direction amid ongoing economic uncertainties. Market participants will closely analyze his remarks for any hints regarding future monetary policy adjustments.
The author and FXStreet emphasize that they are not registered investment advisors, and this article is not intended to serve as investment advice. Instead, it provides an overview of the key events and data releases that could shape financial markets in the coming days.