Forex Today: Dollar eases with yields amid covid worries, US Consumer Sentiment eyed
|Here is what you need to know on Friday, August 13:
Ongoing concerns over the spread of the Delta covid variant and widening China’s regulatory curbs on the country’s technology sector continue to take a toll on the market sentiment this Friday. The risk-off mood boosts the flows into the US Treasury, downing the yields alongside the UIS dollar.
Investors shrug off Fed’s tapering expectations, as the worries over the economic growth amid the escalating covid cases continue to sap the investor’s confidence. Despite the record high in the Wall Street indices, Asian equities traded mixed to lower while the S&P 500 futures held steady.
The US PPI came in higher than expected on Thursday and revived the hawkish Fed bets, checking the upside in gold. Gold price currently trades around $1755, consolidating the recent rebound ahead of the US Michigan Consumer Sentiment data.
Most majors are attempting a tepid bounce amid a broadly subdued greenback, with EUR/USD keeping its range below 1.1750 amid disappointing German economic data. Meanwhile, GBP/USD is defending 1.3800 amid persisting Brexit concerns and fears of a jump in the virus cases in the UK.
The Independent noted that the UK scientists warn of a jump in the covid cases as “the nation’s attention turned to the end of pandemic-related restrictions and holidays in the sun.”
On the Brexit news front, the European Union (EU) citizens have missed the deadline to apply to stay in the UK, which could trigger a fresh Brexit backlash between the Kingdom and Brussels.
Meanwhile, AUD/USD consolidates its bounce to 0.7350, as the covid cases are expected to surge in the coming days. The National Cabinet is scheduled to meet later on Friday and could further harden the border control across Australia.
Cryptocurrencies remain choppy within familiar ranges, with Bitcoin keeping its range around $45,000.
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