Forex Today: Dollar recovers after selloff, durable goods orders, Fed speculation in focus

Here is what you need to know on Wednesday, August 25:

Markets have cooled down early on Wednesday after another cheerful day on Tuesday. Investors are content with the progress of an infrastructure spending bill, Durable Goods Orders data for July, and covid headlines. The Fed is set to refrain from tapering hints. 

No Tuesday turnaround: Investors remained upbeat on Tuesday, pushing the safe-haven dollar down. Strong demand for an auction of 2-year Treasury notes was seen as a sign that any tapering of the Federal Reserve's bond-buying scheme is unlikely to result in an immediate rate hike. 

Tapering: After the Fed announced it would hold its Jackson Hole Symposium online due to the virus' spread, Chair Jerome Powell is expected to refrain from hinting at tapering the bank's $120 billion/month purchase program. Powell speaks on Friday. 

US coronavirus: Some market participants are also content with some moderation in the increase of COVID-19 cases. Daily infections have surpassed 150,000, but the spread has slowed and the vaccination pace has picked up. Some 860,000 received a vaccine dose every day, up from roughly 500,000 early in the summer. 

The dollar has been recovering early on Wednesday in what seems like profit-taking and positioning ahead of the release of Durable Goods Orders statistics for July. Headline orders are set to drop while core ones are projected to edge higher. Estimates could be too low.

See Durable Goods Orders Preview: The trigger for a greenback comeback?

Infrastructure: The House of Representatives advances the Democrats'-backed $3.5 trillion spending bill, overcoming differences between moderates and liberals in the ruling party. The focus now shifts to the Senate. 

EUR//USD is trading below 1.1750, off the highs and ahead of the German IFO Business Climate release. A  moderate decrease is on the cards. 

GBP/USD is above 1.37 but below the peak as UK covid cases are closely watched. 

Gold has slipped below $1,800, paring its gains despite stable 10-year bond yields. It seems that bulls are taking profits. 

Cryptocurrencies have stabilized after falling off the highs. Bitcoin is hovering above $48,000 and Ethereum is clinging to $3,200. 

See Experts believe Cardano will displace Ethereum as the second-largest crypto as ADA prepares for 400% breakout

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