Forex Today: Dollar edges lower, gold finds its feet, US consumer confidence eyed


Here is what you need to know on Friday, September 18:

The US dollar is retreating off the highs, allowing other currencies and gold to recover while stocks are stable after several down days. US consumer confidence and several retail sales figures are also lined up as a turbulent week draws to a close.

The greenback is giving ground, paring some of its Federal Reserve-related gains. The Fed signaled no rate hikes through 2023 but refrained from offering new immediate stimulus despite expressing concern on the outlook. That led to a downfall in stocks and demand for the dollar, moves that now partially unwound.

After August's US retail sales disappointed, the University of Michigan's preliminary Consumer Sentiment Index for September provides a snapshot on shopping this month. Thursday's jobless claims release was mixed, but continues showing a downtrend in applications.

See US Michigan Consumer Sentiment September Preview: A large dose of reality

Gold is trading at around $1,950, off the post-Fed lows but below the levels seen prior to the event. The precious metal also depends on the next round of fiscal stimulus. Democrats and Repulicans are deliberating a proposal worth $1.5 trillion that has been designed by a bipartisan group of moderates. There is no white smoke just yet. 

GBP/USD remains highly volatile. Health experts are reportedly suggesting putting the UK on a second national lockdown as cases continue rising. The Bank of England left its rates unchanged as expected but surprised markets by saying that it is testing the effectiveness of negative rates. Sterling plunged before upbeat Brexit developments sent it back up.

European Commission President Ursula von der Leyen said she is "convinced" that the bloc and Britain can sign a deal. Earler in the week, Prime Minister Boris Johnson agreed to compromise with his fellow Conservative Party members on a controversial bill that violates the Brexit accord with the EU.

UK retail sales are set to show a slower pace of recovery in shopping in August. Canada also publishes consumption figures, yet for July, with moderate advances projected there as well.

Global coronavirus cases have topped 30 million, with deaths approaching 950,000. Europe is emerging as a hotspot once again with France grabbing fresh attention. Infections and deaths in the US have seemed to stop falling.

Oil prices are higher despite the decision by OPEC+ to leave production targets unchanged. The Saudi oil minister warned those that gamble against petrol prices that they "will be outching like hell." 

Cryptocurrencies have been consolidating recent moves, with Bitcoin trading just below $11,000. 

More How central bank inaction turns to action in currencies and what's next for markets

 

 

 

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

AUD/USD fuelled 0.2% by strong PMI Composite in early Asia

AUD is up on the day so far as early data gives the bulls a head start. Early Asia has been kind to Aussie bulls with the price of the currency extending its late New York gains with a robust Construction PMI report, solidly above the 50.0 expansion level, arriving at 54.2.

AUD/USD News

NZD/USD bullish bets above 0.6690 marked down by CPI miss

NZD/USD bulls have been stopped in their tracks by the miss in the CPI data. The US dollar found a lease of life on Wall Street, bulls encouraged by data. New Zealand's CPI was released in recent trade which has changed the bird's flight trajectory in early Asia.

NZD/USD News

XAU/USD’s reversal extends to $1,900 area

Gold’s upside attempt witnessed on Wednesday has been short-lived as the precious metal was unable to extend gains beyond $1.930 area. XAU/USD has given away gains on Thursday, with US dollar demand picking up amid a sourer market sentiment and upbeat US macroeconomic figures.

Gold News

2020 US Elections: The final presidential debate

The second and final presidential debate between Donald Trump and Joe Biden promises to be a political event of the first magnitude. Mr. Biden leads i

Read more

WTI bulls keep the fuell buring into Wall Street close

West Texas Intermediate crude oil is higher on the day, although has run into resistance and started to consolidate.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures