Here is what you need to know on Wednesday, August 28: After edging lower and touching its weakest level in over a year near 100.50, the US Dollar Index stages a rebound toward 101.00 in the European session on Wednesday. The economic calendar will not feature any high-tier data releases midweek and investors will continue to pay close attention to comments from central bank officials and geopolitical headlines.
GBP/USD extended its rally and reached its highest level since March 2022 above 1.3260 on Tuesday. The pair seems to have gone into a consolidation phase on Wednesday and was last seen trading below 1.3240. Gold registered modest gains for the second consecutive day on Tuesday. XAU/USD, however, lost its traction early Wednesday and retreated below $2,510.