Here is what you need to know on Tuesday, September 7:
The risk-on mood extends for the second straight day this Tuesday, as most Asian stock markets are rallying, in anticipation of the ECB and BOC monetary policy decision. Meanwhile, a likely delay in the Fed’s tapering plan and hopes of more stimulus from China keep investors cheerful.
Prevailing an upbeat mood weighs on the US Treasuries, lifting the yields, in turn checking the renewed downside in the US dollar across the board. The greenback is attempting another bounce, as markets move past the effects of a disappointing US NFP report. The futures tied to the US stocks also edge higher, suggesting a positive start on Wall Street, as traders return after a three-day weekend.
Amid the resurgent dollar’s demand, most major currency pair have turned south, with the Antipodeans emerging as the main laggards. AUD/USD drops back towards 0.7400 after spiking to 0.7470, in an initial reaction to the RBA policy decision. The RBA kept the rates on hold at 0.10% while sticking to its tapering plans.
EUR/USD’s recovery faltered at 1.1885 amid rallying yields, as it now edges lower towards 1.1850. Investors shift their focus towards the German ZEW Survey and Eurozone GDP final revision.
The S&P 500 futures are alternating between gains and losses around 4,535 while the US 10-year Treasury yields consolidate Friday’s sharp rally above 1.30%. The US dollar is staging an impressive bounce, taking cues from the recovery in the Treasury yields.
GBP/USD is retreating below 1.3850 despite the upbeat Brexit news. The UK and EU extended the post-Brexit grace period over Northern Ireland indefinitely. The UK’s Brexit Minister David Frost revealed a fresh extension, with no new deadline set for the completion of talks, per The Guardian.
Gold price is retreating towards $1815, having failed to find acceptance above $1830, as all eyes remain on the ECB outcome on Thursday.
Cryptocurrencies are on the defensive. Bitcoin trades close to four-month highs above $52,000.
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.