Steel price remain mildly bid around a one-week high, flashed the previous day. It’s worth noting that the hopes of more stimulus from China and the US dollar pullback underpin the latest rebound in the metal prices even as the recession woes challenge the bulls.

With this, the most active steel rebar contract on the Shanghai Futures Exchange (SFE) rise 0.50% while the hot-rolled coil rose 1.4%. Further, stainless steel climbed 0.4% to 15,430 yuan a tonne at the latest.

China’s readiness to battle the recession woes with a heavy injection of funds seems to have favored the latest optimism among the metal buyers. “More measures from China to support its beleaguered property sector lent further support. China on Monday cut benchmark lending rates and lowered the mortgage reference by a bigger margin to boost its economy hurt by COVID-19 outbreaks and a property crisis,” said Reuters.

On the other hand, Reuters also mentioned that the longer-term outlook remained cloudy as a resurgence of COVID-19 cases and a slowdown in the global economy continued to weigh on steel demand.

It should be noted that the US Dollar Index (DXY) retreats from its intraday high as traders await the US Durable Goods Orders for July, expected 0.6% versus 2.0% prior, for fresh impulse. Also likely to have weighed on the greenback could be the expectations that Fed Chairman Jerome Powell would repeat his attempt to tame hawks during Friday’s speech at the Kansas City Fed’s symposium in Jackson Hole.

Elsewhere, recession fears in Europe, mainly due to the energy crisis, joins India’s hopes of becoming the world’s top steel producer seem to exert downside pressure on the steel price.

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EUR/USD has erased a big portion of its daily gains and retreated below 1.0000 after FOMC Chairman Jerome Powell's speech at the Jackson Hole Symposium. Powell reiterated that the Fed will watch the data before deciding on the size of the September rate hike.

GBP/USD has reversed its direction after having advanced to a daily high of 1.1900 during the American session on Friday. The pair fell sharply during Powell's presser as Fed's chief unwound risk-aversion. The Fed won't hesitate on rate hikes, despite whatever harm that means to economic growth. 

Gold has turned south after having advanced beyond $1,750 during the American trading hours on Friday. The benchmark 10-year US Treasury bond yield is up 1% on the day following Powell's speech at the Jackson Hole Symposium, forcing XAU/USD to stay on the backfoot.

XRP price reveals a triple tap setup formation that forecasts a 60% ascent to $0.561. This bullish idea could face headwinds at the $0.397 and $0.464 hurdles. A daily candlestick close below $0.286 will invalidate the bullish outlook for Ripple.

Equity markets will finally get some clarity on the next move in interest rates when Powell takes to the pulpit on Friday. Recent commentary from fellow board members has turned hawkish, but this did not dent equity enthusiasm on Thursday.

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