Forex Today: Dollar poised to resume its slump

Valeria Bednarik FXStreet

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:

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.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD falls toward 1.1700 on broad USD recovery

EUR/USD turns south and declines toward 1.1700 on Wednesday. The US Dollar gathers recovery momentum and forces the pair to stay on the back foor, as traders look to USD short-covering ahead of US inflation report on Thursday. However, the downside could be capped by hawkish ECB expectations.

GBP/USD trades deep in red below 1.3350 after soft UK inflation data

GBP/USD stays under strong selling pressure midweek and trades below 1.3350. The UK annual headline and core CPI rose by 3.2% each, missing estimates of 3.5% and 3.4%, respectively, reaffirming dovish BoE expectations and smashing the Pound Sterling across the board ahead of Thurday's BoE policy announcements.

Gold clings to moderate daily gains above $4,300

Following Tuesday's volatile action, Gold regains its traction on Wednesday and trades in positive territory above $4,300. While the buildup in the USD recovery momentum caps XAU/USD's upside, the cautious market stance helps the pair hold its ground.