Forex today: dollar climbing back after a negative day in Europe

Ross J Burland FXStreet

Forex today in the NY session had the dollar climbing back after a negative day in the European shift, rising 0.46% to back to 94.09 from 93.66 the open and having made a high of 94.10.

US 10 year rates ranged between 2.3222 - 2.3701%, +0.99% on the day. The latest Bloomberg survey of economists showed the consensus for the US 10- year yield at the end of this year is 2.43%, rising to 2.59% at the end of Q1 next year and steadily upward to 3.4% at the end of 2020. There was not a lot to go on in terms of data for the Fx space in the US session and the focus remained with the political uncertainty in Germany and a dovish rhetoric from ECB's president Draghi who reiterated that the EZ's inflation is still a good way off from satisfactory levels.

The euro ranged from 1.1722 - 1.1812 on Monday after taking a (short- lived) hit n Asia on news that coalition talks had collapsed when the FRD democrats walked out on talks. The weight comes as the odds of another election have risen. In fact, Merkel said that she would prefer such an outcome as opposed to trying to form a minority government. The euro closed down -0.47%. Sterling was higher by +0.14% and traded between a range of 1.3186 - 1.3279. USD/JPY was higher 0.48% and traded within a range of 111.89 - 112.72 while the antipodeans ended lower with the Aussie down 0.19% and Kiwi flat in a non-eventful session.

Key events in Asia

RBA minutes.

Key notes:

Russia's Novak: Russian position on possible extension of output deal will be determined in November
WTI edges lower toward $56 handle, down more than 1% on the day
Wall Street ends choppy session with modest gains

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

GBP/USD picks up pace around 1.3550

GBP/USD leaves behind part of the recent three-day retracement and hovers around the 1.3550 region on Monday. The Greenback’s fresh downward trend helps Cable recoup part of the recent ground lost while attention remains on the potential Fed rate path.

EUR/USD challenges 1.1600 amid a decent recovery

EUR/USD is partially trimming Friday’s severe pulback and is managing to flirt with the key 1.1600 barrier at the beginning of the week. The pair’s rebound follows a modest selling pressure on the US Dollar as investors assess the likelihood of a Fed rate hike in September.

Gold slips back to $4,400, multi-day lows

Gold adds to Friday’s maked decline, briefly falling to the sub-$4,400 region per troy ounce on Monday. The yellow metal’s pullback comes despite the softer stance in the US Dollar and steady uncertainty in the Middle East, although rising yields keep bulls at bay for now.

Crypto Today: Bitcoin, Ethereum, XRP broadly consolidate amid renewed US-Iran strikes

Bitcoin remains resilient above $78,000 as investors anticipate a renewed push toward $80,000. Ethereum continues to demonstrate a constructive technical setup, holding above $2,400. Ripple is exhibiting early signs of recovery near $1.37.

Oil rallies on fresh persian gulf strikes

Energy prices are trading firmer this morning after the US carried out targeted strikes against Iran, drawing retaliatory strikes and reinforcing concerns about a prolonged stalemate in the Persian Gulf. Oil prices started the week stronger following the first military strikes between the US and Iran in a month. ICE Brent briefly moved back above US$90/bbl in early morning Asia trading.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.