There is no change in the factors driving market movements towards the end of this week, the US dollar continues its downward trend as expectations for a central bank interest rate cut increase.
After the US consumer inflation reading for July came in with figures that did not meet expectations on Tuesday, investors will focus on the US producer inflation (PPI) reading in the New York session tonight (Thursday).
US Treasury Secretary Scott Bessent expects a series of interest rate cuts to occur with the possibility that the Federal Reserve (Fed) will begin easing policy with a 50 basis point cut.
Meanwhile, President Donald Trump continues to repeat his criticism of Fed Chairman Jerome Powell and has now named 11 candidates to replace the central bank's chairman.
In addition to the names in the Fed administration, Trump also nominated officials from the firms Jefferies and BlackRock on his list.
The market atmosphere, which still makes investors cautious, is likely to maintain the current pattern, expecting further depreciation of the US dollar but there could be a different reaction when the data is published.
European currencies continued to benefit from the situation with the Euro rising to a new 2-week high against the US dollar despite the latest data for Germany not showing satisfactory figures.
Meanwhile, the Pound recorded its latest 5-week high as the UK jobs report did not hinder the British currency from maintaining its excellent performance.
Asian currencies also recovered, with the Aussie dollar rising despite previously being pressured by the Reserve Bank of Australia (RBA) interest rate cut decision.
The Australian jobs report released in the Asian session this morning showed positive readings with good job growth and the unemployment rate meeting forecasts for a slight decline.
Meanwhile, the Japanese yen currency is also recovering from several days of trading pressure last week.
Among other market focuses, gold trading showed signs of price recovery while Bitcoin recorded a new record high of over $124,000.
