Forex Today: Dollar keeps rallying on fear

Valeria Bednarik FXStreet

What you need to take care of on Tuesday, October 11:

The American dollar extended last week’s momentum and rose on Monday against most of its major rivals as risk aversion dominated financial boards.

On the one hand, the dismal mood was backed by Russia as the country resumed its aggressive attacks on Ukraine, firing multiple missiles that targeted communication and energy systems. The attack reached Kyiv and triggered a massive power outage in several Ukrainian cities.

Conversely, the Bank of England announced additional monetary measures to support the financial system. The central bank doubled its temporary QE bond purchases to £10 billion per day for the upcoming days, although buying should end on Friday.

Global stock markets closed in the red, reflecting market concerns. The EUR/USD pair settled at around 0.9700, while GBP/USD finished the day in the 1.1050 price zone. AUD/USD fell to 0.6274 a fresh 2-year low. USD/CAD trades around 1.3760 as crude oil prices give up on the dismal market’s mood.

The dollar appreciated against safe-haven rivals, with USD/CHF now trading at around parity and USD/JPY reaching 145.70, approaching the highs that triggered BOJ’s intervention.

Gold currently changes hand at $1,667 a troy ounce while WTI fell to $90.60 a barrel.

The focus this week will be on the US Consumer Price Index, to be out on Thursday.

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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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