Global markets opened cautiously on Wednesday as U.S. traders returned after a long weekend, facing a mix of economic data and geopolitical developments.
Gold stood out, hitting a new all-time high above $3,500 after breaking April’s resistance.
Markets in the Asia-Pacific region began the week without much action, despite a flurry of weekend news and data.
With mostly positive U.S. economic data on Thursday, including strong growth, lower jobless claims, and manageable inflation, market fears eased.
Markets have remained mostly subdued throughout the week, apart from Monday’s sharp movements, as investors await crucial economic data releases.
Early on Wednesday, financial markets remained largely stable as traders were split on expectations regarding Federal Reserve rate cuts.
On Monday, the U.S. Dollar (USD) consolidated after a significant drop on Friday, which was driven by Federal Reserve Chair Jerome Powell’s cautious speech at Jackson Hole.
The Yen’s role as a risk barometer and the market’s paring of recent U.S. Dollar losses helped attract buyers, ending a two-week downtrend in USDJPY.
The U.S. Dollar Index (DXY) rose to its highest level in over a week, on track for its biggest weekly gain in three weeks, snapping a two-week downtrend.
The latest FOMC Meeting Minutes eased market concerns, showing that policymakers are sticking to a data-driven approach despite some pressure for more rate cuts.
The Reserve Bank of New Zealand (RBNZ) cut its official cash rate by 0.25%, in line with market expectations.
EURUSD and GBPUSD attempted to recover from a weak Monday, while the Japanese yen strengthened, pulling back USDJPY after its strong rally on Monday.
