Forex Today: Sluggish growth and mounting coronavirus concerns
|Here is what you need to know on Monday, September 21:
The US dollar recovered some ground at the end of the week on the back of risk-aversion but remained weak. Most major pairs finished a second consecutive week unchanged. The biggest winner was the JPY amid increased demand for safety.
Concerns gyrated around the absence of a coronavirus aid package in the US, and renewed tensions between the country and China, after Washington ordered Google and Apple to remove TikTok and We-Chat from their platforms as of Sunday. Sluggish global growth amid the ongoing pandemic adds to the gloomy picture. On a positive note, Secretary of Commerce Wilbur Ross announced this Sunday a one-week delay until September 27, amid a developing deal between the Chinese company and Oracle.
The Sterling remained week despite some Brexit hopes. Unease grew after the UK put under lockdown some cities in the north, and, over the weekend, PM Johnson was said to be considering tightening restrictions as they are now “seeing a second wave.” News suggests that the UK will ban households mixing and reduce opening hours for pubs.
Wall Street finished a third consecutive week in the red, with the slump led by tech shares. US Treasury yields got to bounce on Friday but finished the week little changed.
Australian PM Morrison said he is expecting to see a jobs bounce-back as Victoria prepares to reopen. New coronavirus cases in the area fell to 14 on Sunday, the lowest in three months, supporting plans to start lifting restrictions on September 28. His comments may spur some risk-appetite at the weekly opening.
Europe heads into the autumn facing a coronavirus second wage. Several countries are seeing a higher number of daily cases that they did in March/April. Local lockdowns are being under study in the UK and Spain, while France reported roughly 13,000 new cases, its highest on record.
On-hold central banks put a cap to gold’s demand. The bright metal continues to trade around $1,950.00 a troy ounce.
Crude oil prices closed the week with gains, with WTI around $41 a barrel.
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