Forex Today: Clueless investors keep majors within familiar levels
|Here is what you need to know on Wednesday, August 26:
Optimism related to the US-China trade relationship kept markets in risk-on mood, throughout the first half of the day. Representatives from both sides made positive comments after speaking by telephone late Monday. "Both sides see progress and are committed to taking the steps necessary to ensure the success of the agreement," said US Trade Representative Robert Lighthizer, while the Chinese Ministry of Commerce called the talks “a constructive dialogue.”
The positive market mood eased after the release of US CB Consumer Confidence, which fell to a new pandemic low in August, down to 84.8 from the previous 91.7. The dollar advanced afterwards as equities pulled back from intraday highs, but its gains were limited.
Major pairs remain within familiar levels throughout the day, unable to set a new direction. EUR/USD continues to hold above the 1.1800 level, but lacks momentum. GBP/USD edged marginally higher but remains below 1.3200.
Wall Street closed the day mixed, with the DJIA losing some ground, but the S&P in the green after reaching a record high for a third consecutive session.
US Treasury yields surged to fresh one-week highs, reflecting the ruling optimism.
Gold prices remained stable for a third consecutive day, ending the day unchanged around $1,930 a troy ounce.
Crude oil prices surged to fresh weekly highs, holding on to gains at the end of the day.
Cryptocurrencies traded sharply lower, trimming losses ahead of the close.
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