Forex Today: Markets cheering Trump's plasma push, Sino-American thaw, politics, Fed eyed
|Here is what you need to know on Monday, August 24:
The market mood remains upbeat as efforts to reach a coronavirus vaccine and cure are in full gear, a rapprochement in Sino-American relations, and calm after the Fed minutes. Investors are eyeing the Republican convention and Powell's speech later this week.
Fighting coronavirus: US President Donald Trump has said he will authorize emergency usage of a COVID-19 plasma treatment that has already been in use with around 50,000 patients. China has also allowed for the extraordinary utilization of a coronavirus vaccine.
The AstraZeneca/University of Oxford's immunization project is considered the most advanced one and may also receive a boost from the US administration. The reports have undermined markets.
Despite the heightened rhetoric, the US will reportedly allow American companies to work with WeChat, one of China's leading applications. Earlier, Trump said, "we do not have to do business with China."
The US dollar is stabilizing amid the better market mood. Last week, the greenback benefited after the Federal Reserve's meeting minutes showed reluctance to introduce Yield Curve Control or add any imminent stimulus. Jerome Powell, Chairman of the Federal Reserve, is due to deliver a closely watched speech on Thursday in Jackson ?Hole.
Gold is trading around $1,930, looking for a new direction after a quick trip lower last week.
US politics: The Republican conventions kick off on Monday with the president scheduled to speak every day ahead of his acceptance speech on Thursday. Trump continues trailing rival Joe Biden in the polls.
EUR/USD is struggling around 1.18 as the common currency is also struggling with downbeat purchasing managers' indexes for August and a resurgence of COVID-19 in Europe.
GBP/USD is hovering around 1.31 as another round of Brexit talks ended with little progress. Reopening schools remains high on the agenda.
NZD/USD is under pressure as Auckland will remain under lockdown for another week. AUD/USD is holding up.
USD/JPY is trading below 106, unaffected by Prime Minister Shinzo Abe's health issues. The long-serving leader has reportedly been treated for the chronic digestive disease.
Cryptocurrencies are consolidating in somewhat lower ground, with Bitcoin trading around $11,600 and Ethreum below $400 after falling from moves to the upside.
More Dollar’s fate linked to US economics, not politics
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