Here is what you need to know on Friday, August 13:
Ongoing concerns over the spread of the Delta covid variant and widening China’s regulatory curbs on the country’s technology sector continue to take a toll on the market sentiment this Friday. The risk-off mood boosts the flows into the US Treasury, downing the yields alongside the UIS dollar.
Investors shrug off Fed’s tapering expectations, as the worries over the economic growth amid the escalating covid cases continue to sap the investor’s confidence. Despite the record high in the Wall Street indices, Asian equities traded mixed to lower while the S&P 500 futures held steady.
The US PPI came in higher than expected on Thursday and revived the hawkish Fed bets, checking the upside in gold. Gold price currently trades around $1755, consolidating the recent rebound ahead of the US Michigan Consumer Sentiment data.
Most majors are attempting a tepid bounce amid a broadly subdued greenback, with EUR/USD keeping its range below 1.1750 amid disappointing German economic data. Meanwhile, GBP/USD is defending 1.3800 amid persisting Brexit concerns and fears of a jump in the virus cases in the UK.
The Independent noted that the UK scientists warn of a jump in the covid cases as “the nation’s attention turned to the end of pandemic-related restrictions and holidays in the sun.”
On the Brexit news front, the European Union (EU) citizens have missed the deadline to apply to stay in the UK, which could trigger a fresh Brexit backlash between the Kingdom and Brussels.
Meanwhile, AUD/USD consolidates its bounce to 0.7350, as the covid cases are expected to surge in the coming days. The National Cabinet is scheduled to meet later on Friday and could further harden the border control across Australia.
Cryptocurrencies remain choppy within familiar ranges, with Bitcoin keeping its range around $45,000.
Like this article? Help us with some feedback by answering this survey:
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.
Recommended content
Editors’ Picks
EUR/USD retreats below 1.0700 after US GDP data
EUR/USD came under modest bearish pressure and retreated below 1.0700. Although the US data showed that the economy grew at a softer pace than expected in Q1, strong inflation-related details provided a boost to the USD.
GBP/USD declines below 1.2500 as USD rebounds
GBP/USD declined below 1.2500 and erased the majority of its daily gains with the immediate reaction to the US GDP report. The US economy expanded at a softer pace than expected in Q1 but the price deflator jumped to 3.4% from 1.8%.
Gold drops below $2,320 as US yields shoot higher
Gold lost its traction and turned negative on the day below $2,320 in the American session on Thursday. The benchmark 10-year US Treasury bond yield is up more than 1% on the day above 4.7% after US GDP report, weighing on XAU/USD.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.