Dollar rebounds at open

Kicking off the week, Federal Reserve Chair Jerome Powell signaled in his Jackson Hole speech that the Fed is prepared to begin cutting interest rates, acknowledging that the time has come for policy adjustments. Powell noted a significant reduction in inflation and expressed concern about further cooling in the labor market. However, he downplayed the risk of an economic collapse, emphasizing that the pace, frequency, and scale of rate cuts will be guided by upcoming economic data.

Commodities

Gold is trading slightly below $2,520 mark on Monday, though its downside may be cushioned by the growing anticipation of Fed rate cuts in September. Lower rates typically support gold by reducing the opportunity cost of holding the non-yielding asset. However, concerns about sluggish demand in China, the world's largest gold producer and consumer, could put downward pressure on prices. Key economic data to watch this week includes the US Durable Goods Orders (due later today), as well as the US GDP and PCE-Price Index scheduled for release on Thursday and Friday.

Silver: Silver has found some support from safe-haven flows amid rising geopolitical tensions in the Middle East breaking the resistance of $30 mark.

Oil: WTI crude continues its upward trend, trading near $76.15 during Monday’s Asian session, up 0.45% for the day. However, concerns over weaker demand from China could act as a drag on the market.

Currencies

The EUR/USD pair is drifting lower, trading near 1.1185 in Monday’s early European session. The US Dollar and Japanese Yen are leading the major currencies, while the Australian Dollar and New Zealand Dollar are lagging.

The EURUSD remains constructive above the 100-day EMA, but an overbought RSI may limit further upside. Immediate resistance is seen at 1.1223, while key support lies around the 1.1100 level. Trading volumes may be thinner today as UK markets are closed for the summer bank holiday.