Key facts
- The U.S. dollar traded in a narrow range ahead of key economic data and the Jackson Hole symposium.
- Investors are awaiting U.S. PCE inflation data for July.
- Oil prices declined due to de-escalation signs in the Middle East and hopes of reopening the Strait of Hormuz.
- Asian stocks showed hesitancy ahead of Nvidia's earnings report.
- Bitcoin and gold prices saw gains.
The U.S. dollar traded in a narrow range in early Asian trading, with currency markets experiencing an uneasy calm as investors awaited inflation data, particularly the U.S. PCE report, ahead of the Jackson Hole symposium. The dollar index was holding steady at 98.934, on track for a 1% decline for August.
Signs of de-escalation in the Middle East, including Iran's restart of talks with Oman to manage the Strait of Hormuz, weighed on oil prices. Brent crude futures fell more than 2% to $86.41 per barrel, as the market priced in optimism around potential supply increases. This also helped push bond yields lower, with the U.S. 10-year note yield at 4.634%.
Asian stocks showed hesitancy, with MSCI's broadest index of Asia-Pacific shares outside Japan up 0.12%. Japan's Nikkei eased 0.4%, and the tech-heavy KOSPI dipped 0.2%. Nasdaq futures fell 0.5%, while European futures were flat.
Investors are cautiously awaiting Nvidia's second-quarter earnings report, focusing on the sustainability of the AI spending boom and its profit potential. Analysts expect Nvidia to forecast an 82.8% rise in third-quarter sales to $104.20 billion, with adjusted gross margins around 75%.