Support
Markets awaiting CPI and retail sales reports
Investors are cautious, awaiting key U.S. inflation reports, which are likely to influence both gold and dollar movements this week.
Gold is finding support near $2,424
WTI crude oil is trading around $76 per barrel
USD/JPY pair rising to 147.14
Market Overview
Today is relatively quiet on the macroeconomic front, with no significant reports slated for release. Additionally, the Japanese markets are closed for a public holiday, contributing to the subdued activity.
Key Reports to Watch
The highlight of the week will be the U.S. Consumer Price Index (CPI) inflation report, set to be published on Wednesday. Analysts expect the CPI to remain steady at 3.00% year-over-year, consistent with June's figure. However, a decline below 3.00%, would be a clear sign of weaker inflation pressure.
Another critical release this week is the U.S. retail sales report, scheduled for Thursday. After a few months of weaker performance, retail sales are anticipated to bounce back with a 0.3% month-over-month increase in July. Despite this, consumer sentiment remains low, with high interest rates and a slowing labor market possibly dampening consumer spending.
Currencies
The Japanese yen is weakening, with the USD/JPY pair climbing 0.35% to 147.14. Meanwhile, the Australian and New Zealand dollars are among the strongest performers, gaining between 0.1% and 0.7%.
The Reserve Bank of Australia also commented on the uncertainty surrounding economic forecasts, which has led to the decision to keep interest rates unchanged as policymakers await further data.
Commodities
West Texas Intermediate (WTI) crude oil is trading around $76.00 per barrel during the Asian session, with prices likely to be supported. This is largely due to supply concerns stemming from ongoing geopolitical tensions in the Middle East.
Gold prices are experiencing some dip-buying near the $2,424 mark. Concerns about a broader conflict in the Middle East and expectations for more substantial interest rate cuts by the Federal Reserve are supporting the precious metal. However, the upside remains limited due to a generally positive sentiment and a modest uptick in the U.S. dollar. Investors are holding off on making significant moves ahead of the upcoming U.S.
