The financial markets have experienced noticeable movements amid a cautious anticipation for the upcoming American inflation data this week, which is expected to have a strong impact on the movements of the dollar, gold, and cryptocurrencies. This comes against a backdrop of continued uncertainty regarding the Federal Reserve's monetary policies, driving the markets into sharp fluctuations.
The US dollar attempts to recover but faces pressure Despite continuous declines, the US Dollar Index managed to record some slight gains, rising 0.12% to 104.03 points, supported by increased demand for the dollar in anticipation of the inflation data that will play a key role in determining the direction of American monetary policy in the upcoming period.
Gold loses its luster as demand for safe havens declines Gold prices experienced a strong drop during trading, with the ounce falling to $2,882, affected by increasing optimism regarding reaching an agreement to end the Russian-Ukrainian war, which reduced demand for safe assets. Additionally, the relative strength of the dollar contributed to putting pressure on gold prices, pushing investors to reevaluate their positions.
Bitcoin under pressure amid profit-taking and anticipation of the digital summit Bitcoin sharply fell by 5.43% to $88,846, amid intensive selling pressures, especially following the announcement of the creation of the US Bitcoin Reserve after Trump's summit on cryptocurrencies. According to the announced plan, the reserve will be funded from seized currencies in criminal and civil cases, with no government plans to purchase more Bitcoin from the market, disappointing investors who had hoped for stronger market support.
Oil prices decline amid rising concerns of oversupply Oil prices witnessed notable declines amid increasing fears of rising global supply, with Brent crude currently trading at $69.13 per barrel, affected by reports indicating that crude oil production will increase starting next April, raising investors' concerns about an oversupply affecting prices in the near term.
US stock markets suffer strong losses led by technology US stock indices sharply fell during the session, with the Dow Jones Industrial Average dropping by 2.37% to 41,788 points, while the S&P 500 decreased by 3.11% to 5,590 points. Nasdaq recorded its largest daily losses, declining 4.54% to 17,369 points, amid intense selling of technology stocks, which were affected by concerns related to interest rate hikes and a reassessment of market conditions.
Cautious anticipation of American inflation data and its impact on the markets Amid these strong fluctuations, the markets are waiting for the American inflation data, which is expected to play a decisive role in shaping the upcoming monetary policy. These data are expected to significantly affect the trends of the dollar, gold prices, and cryptocurrencies, putting the markets in a state of heightened anticipation and caution for unexpected movements in the coming days.
