Forex Today: Dollar buoyant ahead of Powell, UK PM Johnson’s COBRA meeting eyed


Here is what you need to know on Tuesday, September 22:

The US dollar consolidated the surge to six-week highs, as the bulls took a breather amid holiday-thinned quiet trading and ahead of the US Federal Reserve (Fed) Chair Jerome Powell first of three appearances on Capitol Hill this week.

According to the prepared remarks released early Monday, Powell is expected to say that the Fed committed to using all tools available to ensure a strong recovery.

The uncertainty and delays in US fiscal stimulus combined with mounting coronavirus risks on the global economic recovery spurred the haven demand for the greenback at the expense of the risk assets.

The omnipresent US-Sino tensions also added to the downbeat market mood. The Global Times reported that Beijing is unlikely to approve the Tik Tok-Oracle deal, which is in-principally approved by US President Donald Trump.

Asian equities traded mostly lower, despite the easing of the Wall Street sell-off towards the closing. The US stock futures also traded on the back foot, reflective of the tepid risk sentiment.

Across the fx board, AUD/USD tested two-week lows sub-0.7200 after the Reserve Bank of Australia (RBA) Deputy Governor Guy Debelle unveils four policy options, including currency intervention and negative interest rates. USD/JPY stabilized around 104.50 following the rejection near the 104.80 region.

EUR/USD remained under pressure above 1.1750 amid the virus resurgence and localized lockdowns in different countries in the Old Continent. The European Central Bank (ECB) President Christine Lagarde’s downbeat outlook on the economy also weighed on the shared currency.

GBP/USD’s rebound stalled above 1.2800, as traders await the Bank of England (BOE) Governor Andrew Bailey’s speech and UK Prime Minister (PM) Boris Johnson’s emergency COBRA meeting amid a spike in infections. A two-week nationwide lockdown could be on the table. Pubs and restaurants in England will be shut after 2200 hours.

Gold attempted a bounce on the $1900 level after Monday’s 3% slump. WTI licked its wounds below $40, in the face of rising concerns over global economic recovery.

Cryptocurrencies’ remained in downside consolidation mode, with Bitcoin hovering below the $10,500 level.

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

GBP/USD tumbles from the highest since 2018 on the Brexit impasse

The GBP/USD roller coaster continues with a downfall below 1.35 after the pair hit a 31-month high of 1.3539 earlier. Brexit talks have yet to yield an agreement. Negotiations are set to continue through the weekend.

GBP/USD News

EUR/USD battles 1.2150 after disappointing NFP

EUR/USD is trading off the 32-month highs amid bumps in US stimulus and vaccine distribution. Markets await the all-important US Nonfarm Payrolls missed expectations with 245K jobs gained in November. 

EUR/USD News

XAU/USD fails to break $1850 and turns to the downside

Gold peaked after the beginning of the American session at $1848/oz reaching the highest level since November 23 and then turned to the downside. It bottomed at $1829 and is it about to end the week hovering around $1830.

Gold news

Dollar downfall explained and what's next for markets

The safe-haven US dollar is hitting multi-month and multi-year lows against its peers while stocks are on fire. What is behind the risk-on rally? Valeria Bednarik, Joseph Trevisani, and Yohay Elam discuss markets' moving parts as 2020 nears its end.

Read more

Extra week of Black Friday!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex MAJORS

Cryptocurrencies

Signatures