The U.S. Dollar is trading in tight ranges as markets trade quietly with Gold being the latest and greatest sensation for those looking for safe-haven gains
Overview
Indeed, September is turning out to be quite a month for bullion, best performance since 2020, with its price now reaching $3,780.00 an ounce. The precious metal has been gaining popularity with investors who are dumping dollars as the prospect of lower interest rates provides incentives to look for yield elsewhere and with the state of the world, gold is winning out over Emerging-Markets or any other alternatives. China is also reportedly interested in becoming more involved in the gold trade, bringing even more interest to it, increasing demand, pushing prices even higher.
Later this morning, we will have S&P Purchasing Managers Index figures for September out at 9:45AM. There may be some headlines involving Fed talk as Chairman Fed Powell and other members, including the newest one, Stephen Miran, will weigh on future policy potential. We shall see if equities rise as a result of tech companies committing more efforts in developing A.I. At the moment, this is the fourth day of overall improvement for the Buck, though moves have been mild.
What to Watch This Week…
- New Home Sales on Wednesday 10AM
- US GDP on Thursday 8:30AM
- PCE and University of Michigan Consumer Sentiment on Friday
- Monex USA Online is always open
The complete Economic Calendar can be found here.
GBP ⇓
Sterling is trading in familiar levels but could see its fortunes turn as PMI data released earlier showed there is a bit of a slowdown. S&P Global PMIs this month came in with lower readings than expected with Manufacturing and Services surveys showing less activity for decision makers. The overall Composite was just 51.0 when 53.0 was expected, particularly hurt by the contractionary reading of 46.2 vs 47.1 in Manufacturing. Low-performing indices can eventually knock on the Pound, which has managed to trade within a half percentage range in September.
CAD ⇑
The Canadian Dollar has not fallen nor risen in September, staying flat thus far regardless of the havoc and interesting central bank action. The Bank of Canada decided to cut interest rates simultaneously with the Fed, but this has not affected its outlook. Struggles in labor have been bad news, but they have been balanced by recent improvements in relations with the U.S. administration as well as trading partner Mexico. The “loonie” could surprise and see gains if Gross Domestic Product data on Friday comes out in the positive after monthly GDP for July and June have struggled to overcome a (-0.1%) contraction.
