Forex Today: Dollar backed by risk aversion

Valeria Bednarik FXStreet

What you need to know on Tuesday, September 21:

The American dollar is the overall winner at the beginning of the week, up on the back of risk-aversion. Concerns revolve around the Evergrande Group, Chinese second-largest property developer by sales. Shares of the company plummeted at the weekly opening by over 10%, as the company faces a possible default as its liabilities ascend to $305 billion and its effect on the local and global financial systems.

EUR/USD briefly pierced the 1.1700 level and settled in the 1.1720 region, not far from the year low at 1.1663. The pound was among the worst performers, with GBP/USD down to 1.3639.

Commodity-linked currencies fell to fresh September lows vs the greenback, with AUD/USD currently trading around 0.7240 and USDCAD in the 1.2830 price zone. The USD/JPY pair plunged to 109.31.

Gold prices recovered throughout the day, ending it with gains in the 1,760 price zone. Crude oil prices bounced from daily lows but ended the day in the red.

Wall Street posted sharp losses, with the DJIA down 609 points at the end of the day.

The US Federal Reserve and the Bank of England meet this week. The People Bank of China is meeting on Wednesday.

Bitcoin bulls continue to get slaughtered, $40k BTC in sight

Like this article? Help us with some feedback by answering this survey:

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.