Investors traded cautiously, awaiting more clues concerning monetary policy. Safe-haven assets outperformed others, with sovereign bonds rallying.

Sovereign bonds climbed with safe debt trimming yesterday’s fall. U.S. President Trump added more pressure on the Fed to cut rates by at least 100 bps, ahead of the Jackson Hole gathering on Friday, while political uncertainties in the Eurozone supported the rallying of the 10Y German bund. With regard to peripheral bonds, Italy’s bonds recovered from early losses after the resignation of its PM Conte.

Italy’s risk premium narrowed as an alternative coalition is still an option to avoid a snap elections.

Safe-haven currencies (JPY and CHF) outperformed others across the G10 against a backdrop of uncertainty. The euro strengthened, while the DXY index fell from levels close to its 2019 record. The pound rebounded from early losses after German Chancellor Merkel said that practical Brexit solutions will be considered despite the EU’s rejection of Boris Johnson’s demand to eliminate the Irish backstop from any deal. In EM, Latam currencies inched up across the board, whereas the TRY led the losses. In commodities, gold prices edged up, while oil prices erased yesterday’s gains.

Global stocks inched down with the IBEX leading the losses in Europe.


Download The Full Market Comment

En ningún caso BBVA será responsable de las pérdidas, daños o perjuicios de cualquier tipo que surjan por acceder y usar el website, incluyéndose, pero no limitándose, a los producidos en los sistemas informáticos o los provocados por la introducción de virus y/o ataques informáticos. BBVA tampoco será responsable de los daños que pudieran sufrir los usuarios por un uso inadecuado de este website y, en modo alguno, de las caídas, interrupciones, ausencia o defecto en las telecomunicaciones.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD stays under pressure as traders await Fed rate decision

Despite shooting up on Tuesday, the EUR/USD pair fails to hold on to recovery gains as it trades near 1.1070 ahead of Wednesday’s European session. All eyes on the US Federal Reserve’s monetary policy announcement due at 18:00 GMT.


GBP/USD charts bullish continuation pattern ahead of the Fed

GBP/USD created a bullish outside bar candlestick on Tuesday, signaling a continuation of the recent rally. The outlook would turn bearish if the pair closes below Tuesday's low of 1.2392, in the face of a less dovish Fed outcome.


USD/JPY sticks to tight range on 108.00 ahead of Fed

USD/JPY is steady in Tokyo on Wednesday, having been in a chop overnight in the low 108s before scoring a fresh high in the 108.37 earlier. USD/JPY's resistance up in the 109.30's are in focus, as attention turns towards the key FOMC event. 


Federal Reserve Preview September 17-18 FOMC: Even Odds

The already complicated economic and bureaucratic circumstances for Wednesday’s Federal Reserve decision were further disturbed when Saudi oil facilities were attacked over the weekend.

Read more

Gold seesaws around $1,500 with all eyes on FOMC

With the global traders on a wait and see approach ahead of the key event, Gold offers fewer moves while taking rounds to $1,500 during Wednesday’s Asian session. Also supporting the bulls were positive statistics from the US and the Eurozone.

Gold News

Forex Majors