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

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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.

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