Forex Today: Dollar the strongest despite easing some
|What you need to know on Monday, August 23:
The dollar gave up some ground at the end of the week, but it’s the strongest currency across the FX board. The better performance of equities and bouncing government bond yields put a cap on the greenback’s demand.
The main themes were the spread of the coronavirus Delta variant and its possible effects on the economic recovery, and US policymakers speeding up tapering talks. The Jackson Hole Symposium will take place by the end of this week, and market participants are eagerly waiting for Federal Reserve Chair Jerome Powell’s words on the matter.
The Australian dollar is the weakest, having settled against its American rival at around 0.7130, not far above a fresh 2021 low of 0.7105. The shared currency was also among the weakest, bottoming at 1.1663 and finishing the week just below the 1.1700 price zone. GBP/USD trades near its July low at 1.3571, while USD/JPY is unable to advance beyond the 110.00 threshold.
The USD/CAD pair retreated sharply after topping at 1.2948, ending the day at around 1.2820. The pair was affected by plummeting oil prices, with WTI ending the day at $61.80 a barrel, down roughly 7% in the week. Prospects of slowing demand undermined the commodity.
Spot gold kept seesawing between gains and losses, ending the week at $1,781 a troy ounce.
US Treasury yields were up at the end of the week, with the yield on the 10-year note settled at 1.25%, up from 1.22%.
Wall Street posted substantial gains but finished the week in the red and below the record-highs reached earlier in the week.
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