Here is what you need to know on Friday, September 24:
The risk-on sentiment from the US last session cooled off slightly in the Asian trading this Friday, as the ongoing uncertainty around the fate of indebted China Evergrande put investors in limbo.
The Asian markets traded mixed while the S&P 500 futures fluctuated between gains and losses, virtually unchanged on the day. The US dollar looked to stabilizing, attempting a minor bounce after Thursday’s blow. The cautious market mood combined with higher Treasury yields rescued the dollar bulls.
No latest developments on the China Evergrande story after Thursday’s local coupon repayment spooked markets, as they await fresh updates on the impending USD83 million offshore coupon payment and next week’s $47.5 million payment, both of which have 30-days grace period before they could be considered as default.
Investors also digest the hawkish shifts in the Fed’s and BOE’s monetary policy stance amid the optimism on the US $3.5 trillion spending bill.
Gold price is looking to extend the recovery from six-week lows while recapturing $1750. WTI is consolidating near monthly highs around $73.50, shrugging off news that China’s NDRC is looking to solve issues of rising raw material prices while tapping onto the strategic oil reserves.
Across the G10 fx space, the Antipodeans have stalled their recovery mode, as AUD/USD eases back below 0.7300 after the IMF cut Australia’s 2021 GDP growth forecast amid property market concerns. Meanwhile, USD/JPY holds the higher ground around 110.50, benefiting from the US Treasury yields, with the benchmark 10-year rates hovering near two-month tops.
EUR/USD is holding onto its upside above 1.1700, despite the firmer yields and downbeat Euro area Preliminary Markit PMI reports. ECB President Christine Lagarde said that many causes of higher prices are temporary. German IFO survey and Fed Chair Jerome Powell’s speech will be in focus. Sunday's German election could keep the EUR traders wary.
GBP/USD is trading above 1.3700, preserving most of the hawkish BOE-induced gains. The BOE stood pat on its monetary policy settings but hinted at a potential rate hike, sooner than expected.
Cryptocurrencies are back in the red, with Bitcoin languishing below $45s,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.