Forex Today: Dollar regains its pose in the near term
What you need to know on Wednesday, September 8:
The American dollar advanced against all of its major rivals. The EUR was the strongest, as it shed modest 40 pips. Commodity-linked currencies and safe-haven´s CHF and JPY shed the most ground vs the greenback.
GBP/USD also retreated, but trades a few pips below the 1.3800 level, as comments from BOE’s Saunders partially offset the slide. Bank of England policymaker Michael Saunders, who said that the UK does not need as much stimulus as before, adding that “maybe” is right to think of rates going up “in the next year or so.
Equities had a bad day, with most European and American Indexes closing in the red. The Nasdaq Composite managed to post some modest gains ending the day up by 10 points. The spread of the Delta coronavirus variant fuels concerns about economic growth.
US government bond yields soared. The yield on the 10-year Treasury note peaked at 1.385% to end the day at 1.37%.
XAU/USD is trading at around the 50% retracement of its latest bullish run measured between 1,677.75 and 1,916.50 at around 1,797. The risk of a bearish extension has increased, according to technical readings.
Crude oil prices were also under selling pressure down for a third consecutive day. A dismal market’s mood, and news from Saudi Arabia’s state oil giant, Aramco that announced on Sunday that it lowered its official selling price (OSP) of all crude grades to Asian refiner in October, weighed on prices. WTI settled at $68.30 a barrel.
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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.
