Forex today: Dollar recovers lost ground to a high of 97.56 as trade optimism returns, lifting markets


Forex today was a touch firmer on the bid with respect to risk appetite as markets flipped risk on, with risk assets grinding back some of the losses seen the prior day as trade spat sentiment continues to dominate the financial and commodity markets. 

US President Trump’s trade comments were optimistic and he tweeted: 

“When the time is right we will make a deal with China. My respect and friendship with President Xi is unlimited but, as I have told him many times before, this must be a great deal for the United States or it just doesn’t make any sense.”

Should markets buy into promising talk such as this, in anticipation of meetings to take place in due course, then risk can continue to cover. Trump said he’ll meet with President Xi at the Osaka G20 summit (28-29 June), and said that there is a "very good dialogue going."  Later headlines said that Mnuchin will head to Bejing to continue talks soon. Trump also renewed his criticism of the Fed and claimed that GDP would grow at 5% with “a little quantitative easing.” This also pumped up the stock markets, risk-FX and enabled yields and teh dollar to recover some lost ground. The US 10yr treasury yield rose from 2.40% to 2.43%. The 2yr yield climbed from 2.18% to 2.21%. The DXY moved from the 97.20s to a high of 97.56.

Currency action (Analysts at Westpac summarised)

  • EUR/USD fell from 1.1240 to 1.1205. 
  • GBP/USD was unable to gain on the low UK unemployment data, losing 0.5c over the day to 1.2910. 
  • USD/JPY ranged between 109.45 and 109.75, consolidating its Tokyo session gains.
  • AUD/USD was unable to rally on the better risk mood, trading flat on the day around 0.6945. 
  • NZD/USD had reached 0.6590 in Sydney trade, then fading to 0.6575.
  •  AUD/NZD dipped to 1.0546 before rebounding to 1.0565.

Key notes from U.S. session:

Wall Street bounces on Trump striking a more upbeat tone on US-China trade negotiation

Key events ahead: 

Australian consumer sentiment and  Australia’s key wages measure come ahead of China's  industrial production, retail sales and fixed asset investment.

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD nears 1.1000 amid fears of US-EU trade war, mid-East flare-up

EUR/USD continues easing toward the critical support, a as fears of US tariffs against the EU and the fallout from the attack on Saudi oil installations weighs. Little data scheduled for today will leave sentiment in control.

EUR/USD News

GBP/USD drops to around 1.2450 ahead of Johnson-Juncker meeting

GBP/USD is trading closer to 1.2450, lower. UK PM Johnson will meet EC Commission President Juncker to discuss Brexit amid reports of progress. Tensions in the Middle-East and uncertainty ahead of the Fed impact markets.

GBP/USD News

USD/JPY looking to close the bearish opening gap amid risk-off

USD/JPY gapped down to 107.44 on Monday’s open as risk appetite is diminished following the attack on Saudi Arabian oil facilities. The spot now trades near 107.80, aiming to close the bearish opening gap ahead of a big week. 

USD/JPY News

Gold: Once again rebounds from ascending trend-line/23.6% Fibo. confluence support

Gold on Friday ended on a downbeat note and recorded its third consecutive week of declines, albeit once again managed to find decent support near a 3-1/2-month-old ascending trend-line.

Gold News

Top 3 price prediction Bitcoin, Ripple, Ethereum: Altcoins’ pre-season knocks on doors

As is customary in the Cryptocurrencies market, weekend trading results in significant movements. On this occasion, it is the Altcoin segment – and especially Ethereum –  that opens Monday's session with a considerable gain over Friday's close.

Read more

Forex MAJORS

Cryptocurrencies

Signatures