US Dollar Weakens on Treasury Buyback News
The US Dollar remained under broad selling pressure, trading near multi-month lows against a basket of major currencies including the Euro, British Pound, and Canadian Dollar. This dollar softness was widely attributed to the US Treasury's announcement that it would expand its long-end bond buyback operations. The move has prompted discussions among analysts about potential dollar debasement and structural risks for the currency.
Silver Price Surges to Two-Month High
Amid the broad-based weakness in the US Dollar, silver prices rallied for a third consecutive day, benefiting from the softer greenback. The precious metal surpassed the $69.00 level during the European session, reaching its highest point in two months.
Geopolitical Tensions Support Oil Prices
Market focus remains on geopolitical developments, particularly the US warning of imposing the "toughest sanctions in history" on Iran. This threat has helped stabilize crude oil prices near one-month highs, offsetting reports of a US inventory build. Broader market sentiment is also being shaped by ongoing conflicts, although some analysts note that war-hit European markets have shown resilience.
Mixed Economic Signals from Global PMI Data
Flash Purchasing Managers' Index (PMI) data for August presented a varied global economic picture, with market participants monitoring for signs of strength or weakness. Manufacturing activity in the Eurozone and Germany expanded at a surprisingly faster pace than anticipated. Conversely, India's manufacturing PMI declined, while UK retail sales for July fell by 0.5%, in line with expectations.
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