Forex Today: Dollar poised to resume its slump

What you need to know on Tuesday, September 7:

The greenback posted a modest comeback on a dull Monday. US and Canadian markets were closed as both countries celebrated Labor Day, exacerbating range trading. The American currency corrected higher but remains weak. Among its rivals, the pound is the worst performer, as investors see no reason to buy the sterling.

The EUR/USD pair is currently trading around 1.1870, while GBP/USD hovers around 1.3830. Market participants see no reason to buy the latter, amid a scarce macroeconomic calendar, but also as the UK keeps reporting higher coronavirus contagions. Over the last 24 hours, the number hit  41,190 new coronavirus cases and 45 new deaths. No restrictive measures are in the docket, but speculative interest fears the possibility.

Commodity-linked currencies posted modest losses against their American rival with AUD/USD currently trading in the 0.7430 price zone and USD/CAD at 1.2520. The USD/JPY pair remains stable below 110.00.

After peaking at $1,833.95 a troy ounce on Friday, the price of gold has been on retreat mode, currently trading around 1,823. The bright metal is back to not yet trimmed all of its post-Nonfarm Payrolls gains, but it is trading below the 38.2% retracement of its March/June rally at 1,825.10. However, XAU/USD trades nearby, somehow suggesting that bulls may give it another try to finally clear the level-

Crude oil prices saw little action on Monday, finding mild support in the positive tone of European equities. WTI futures stand below $69.00 a barrel.

The Reserve Bank of Australia is having a monetary policy meeting on Tuesday. The Bank of Canada and the European Central Bank will also announce their decisions this week, with market participants focused on the respective imbalances with the US Federal Reserve.

Dogecoin survives volatility and remains on track to $0.35


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.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD remains pressured after US data misses estimates

EUR/USD is trading closer to 1.1750, paring its recovery from earlier in the day as the safe-haven dollar is bid. US Consumer Sentiment missed estimates with 72 points in September. The financial woes of China's Evergrande are weighing on sentiment.


GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 


XAU/USD surrenders intraday gains, drops closer to $1,750 level

Gold struggled to preserve its intraday gains and dropped to the lower end of the daily trading range during the early North American session. 

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more