From Investing.com: 2024-09-03 04:44:00

Markets are gearing up for a busy week, with the US dollar gaining momentum after the bank holiday. The focus today is on the ISM manufacturing survey, crucial for setting the tone of the week. Gold prices drop while oil sees a recovery, though the outlook remains uncertain. Attention is on US data releases, particularly the employment subcomponent of the ISM manufacturing index, as weak figures could lead to concerns about Friday’s non-farm payrolls report. The possibility of a Fed rate cut announcement on September 18 hinges on the labor market data amid strong economic indicators.

Eurozone troubles persist, with the euro losing ground as rumors of factory closures in Germany weigh on European car manufacturers. The recent poor election performance in two German states signals trouble for Chancellor Scholz’s chances in the upcoming Federal election. The ECB is expected to announce a 25bps rate cut next week, but it may not be sufficient to address the structural issues facing the Eurozone, especially in Germany.

Gold prices dip below $2,500 while oil prices see gains, with the OPEC+ alliance preparing for a production increase. Concerns about a larger jump in production quotas, particularly due to Libya’s production issues, contribute to the bearish trend in the oil market. Despite efforts by the Chinese government to revive its economy, disappointing data prints continue to impact demand for oil, posing challenges for a sustained recovery in oil prices.



Read more at Investing.com: US Dollar Could Suffer if the ISM Survey Disappoints