The recent strength of the US dollar, driven by a focus on the Federal Reserve, has negatively impacted the price of gold. Treasury yields and real yields have also increased, further contributing to demand for the dollar. If the issue of the debt ceiling in Washington is resolved, it remains uncertain how this will affect the XAU/USD exchange rate.
The Japanese Yen’s performance has been affected by the recent US debt deal. The USD/JPY pair has surpassed a crucial resistance level, while the EUR/JPY and GBP/JPY pairs are currently facing significant obstacles.
The resolution of the debt crisis may have an impact on the US Dollar’s performance this week, as Treasury yields remain strong and equity markets experience a slight uptick. The possibility of decreased demand for a safe haven currency raises questions about the future of the USD.
The British Pound will be affected by UK interest rates and US economic data, with UK government bonds experiencing a difficult time due to inflation data. The Euro’s recovery is at risk due to various factors, including potential debt ceiling deals and retracement in EUR/USD. Gold prices may experience a downward correction due to rising real yields and strengthening US dollar. The US dollar has increased 3% over three weeks due to discouraging economic data, and the focus will be on the non-farm payrolls report. The S&P 500 and Nasdaq indices are expected to have continued momentum due to optimism about increasing the US debt ceiling. It is important to monitor significant levels in both indices.