Forex today: All pretty much business as usual, markets stabilizing


  • Markets attempting to stabilise in the face of adversity.
  • USD/JPY sustained much of yesterday’s sharp rebound.

Forex overnight saw some slight recovery in risk following the Chinese saying that they ill do what they can to stablise the Yuan and Kudlow saying that the US and Chinese trade officials will meet again in September, instilling some optimism in the markets. The VIX dropped, sticks climbed a fraction of the rout and the yen was pushed back to the 107 handle, albeit only temporarily. 

The USD/CNY was fixed well below 7.00 yesterday which gave the initial relief in markets yesterday in Asia and the fact that the US Treasury said that the Chinese were FX manipulator, the feelings there since is that, "Wel, we already knew that". And the fact that the Reserve Bank of Australia didn't show too much concern and held rates, albeit, with an explicit easing bias for the future, it was all pretty much business as usual in the absence of any shocks or key US data. A fix today below 7 will be another plus for risk appetite. 

Currency action

As for currency action, analysts at Westpac explained as follows:

"EUR/USD slipped from yesterday’s peak of 1.1240 to 1.1200, dead flat on the day. GBP/USD seesawed then steadied around 1.2165, up 0.2% over the day. CAD weakened in line with oil prices. USD/JPY sustained much of yesterday’s sharp rebound from a multi-month low of 105.52 to 107.09, trading around 106.40/60, and leaving the safe-haven yen the underperformer on the day.

AUD/USD is flat on the day at 0.6760, a weak performance after rallying to 0.6800 on the CNY rebound and Australia’s record trade surplus. NZD/USD is also flat on the day at 0.6530, the rally on NZ’s sub-4% unemployment rate unwinding. As such, AUD/NZD is net unchanged at 1.0360, recovering from a low of 1.0265 on the NZ data."

Key notes from Wall Street:

Key events ahead: 

  • PBoC fix, expected at 6.99 vs the greenback. 
  • "The RBNZ Monetary Policy Statement is fully priced for a cut in the cash rate 25bp to 1.25%, likely accompanied by a signal of more to come (12pm Syd/10am Sing/HK). The key to any market reaction will be the strength of its guidance about further easing," analysts at Westpac noted. 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD slides under 1.16 as US Retail Sales smash estimates

EUR/USD is trading under 1.16 after US Retail Sales smashed estimates with 0.7% in September. Treasury yields are rising. The risk-on mood continues to underpin the pair, as the ECB policymaker Wunsch dismisses inflation concerns. 

EUR/USD News

GBP/USD retreats below 1.3750 after US data

GBP/USD has pared some of its gains after US Retail Sales beat estimates, with the core group hitting 0.8% last month. Earlier, investors shrugged off dovish comments from two BOE members. 

GBP/USD News

XAU/USD slumps to $1,770 area on upbeat US data, surging US bond yields

Gold started the last day of the week on the back foot and extended its slide to a fresh daily low of $1,770 in the early trading hours of the American session pressured by the dollar's resilience and surging US Treasury bond yields.

Gold News

Crypto bulls on winning streak pushing for more

Bitcoin price favors bulls reaching $60,000 by the end of this week and onwards to new all-time highs by the end of next week. Ethereum price broke a bearish top line and could hit new all-time highs by next week in tandem with Bitcoin. 

Read more

Why is Tesla going up?

Tesla's (TSLA) stock price has finally pushed higher in a series of steady and sure moves. We had nearly given up on our bullish call with Tesla stock as it kept struggling around the $800 level.

Read more

Forex MAJORS

Cryptocurrencies

Signatures