The EUR/USD currency pair slipped to three-day lows around 1.0430 as the US dollar strengthened. This decline followed Monday's rejection from yearly peaks above the 1.0500 barrier. In commodities, silver and gold prices soared, with silver surpassing $32.00 per ounce and gold climbing past the $2,900 mark. Meanwhile, WTI crude oil prices tested the crucial $72.00 per barrel level due to renewed supply concerns. Market participants are also closely watching key economic indicators due to be released this week, including the FOMC Minutes on Wednesday and UK inflation figures, which are expected to significantly influence market dynamics.
The resurgence of the US dollar's bid bias has pressured the EUR/USD pair, causing it to drop to recent lows. This movement comes ahead of the release of the Federal Open Market Committee (FOMC) Minutes, which could provide insights into future monetary policy and impact currency markets. Additionally, Federal Reserve Governor Philip Jefferson is scheduled to speak, potentially offering further clues on the Fed's stance amid current economic conditions.
In the commodity sector, WTI crude oil prices have been volatile as they retested the $72.00 mark per barrel. This fluctuation is attributed to renewed supply concerns, adding uncertainty to the energy market. Meanwhile, precious metals like silver and gold have seen significant gains. Silver rallied past $32.00 per ounce, hitting weekly peaks, while gold prices climbed further north of $2,900 per ounce troy. These increases are driven by rising safe-haven demand and heightened tariff narratives.
In other developments, Cardano (ADA) experienced a downturn as its price fell below the $0.80 support level, registering an 8% daily loss on Tuesday amid bearish macroeconomic sentiment. However, optimism persists with Cardano's latest network improvement proposal, which may drive positive ADA price action in the coming days.
Several important economic releases are slated for this week. The European Commission is set to release its Winter Forecasts, which could influence market expectations regarding economic growth in the euro area. Additionally, the region's Current Account results will be published, providing more insights into its economic health.
In the United States, a series of reports are due, including Building Permits, Housing Starts, and the American Petroleum Institute's (API) weekly report on crude oil inventories. These reports could offer valuable information about the state of the U.S. housing and energy markets.
Moreover, the usual MBA Mortgage Applications data will be published, shedding light on activity in the mortgage sector. In Australia, the Reserve Bank of Australia announced a cut in interest rates as anticipated, a move that could have implications for economic growth and inflation.