Forex Today: Dollar reigns as risk aversion leads

Valeria Bednarik FXStreet

What you need to take care of on Tuesday, September 6:

The greenback started the week advancing against most major rivals, although a Federal holiday in the US maintained volumes at their lows and major pairs within limited intraday ranges.

The EUR/USD pair fell to 0.9877, a fresh 22-year low, as the energy crisis steepens. Russian gas provider Gazprom shut down the Nord Stream 1 pipeline on Friday, reporting a leakage. On Monday, news agencies reported that Moscow’s decision to cut energy to Europe would continue until Western nations lift sanctions imposed after the Ukraine invasion. Germany announced it will keep maintaining two nuclear power plants until April. Uncertainty ahead of the winter is likely to maintain the shared currency on the negative side of the equation.

The GBP/USD pair settled at 1.1515 after falling to 1.1442. The United Kingdom confirmed Liz Truss would become the next Prime Minister after beating Rishi Sunak as Tory leader.

USD/CAD is lifeless around 1.3140, while the AUD/USD pair battles the 0.6800 level ahead of the Reserve Bank of Australia monetary policy decision. The central bank is expected to hike the cash rate by 50 bps for a fourth consecutive month.

Safe-haven gold saw no action, stuck around $1,710 a troy ounce. The OPEC+ announced plans to cut production targets by about 100,000 K barrels per day starting October. The announcement lifted oil prices, although the US holiday limited activity around WTI, now changing hands at $88.80 a barrel.

The USD/JPY pair trades at around 140.50, while USD/CHF hovers around 0.9800.

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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.

GBP/USD stays slightly offered below 1.3600

Following an initial drop to fresh six-day lows, GBP/USD now picks up some updside traction and trades in levels just shy of the 1.3600 barrier on Thursday. The generalised cautious tone among market participants continue to underpin the Greenback ahead of Friday’s data releases and the Fed Warsh’s speech.

EUR/USD struggles for direction around 1.1650

EUR/USD gyrates around the 1.1650 region amid the absence of clear direction and following an earlier drop to the 1.630 area. The pair’s vacillating mood comes in response to the equally irresolute price action in the US Dollar as investors warm up for the release of the NFP Annual Revision and the speech by the Fed’s Warsh at the Jackson Hole Symposium, both events due on Friday.

Gold recovers $4,600, buyers unwilling to give up

Gold adds to Wednesday’s pullback, although it manages to pick up some pace and come closer to the $4,600 mark per troy ounce on Thursday. In the meantime, the yellow metal remains on the back foot despite the widespread caution and the lack of clear direction of the US Dollar.

Ripple rebounds as whales accumulate 460 million XRP

Ripple (XRP) holds above $1.40 support on Wednesday, as bulls return to take control following three consecutive days of declines. The remittance token’s upside appears capped at $1.50 while extended gains would face additional resistance at $1.70. A break above $2.00 would mark a potential regime shift from bearish to bullish.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.

Kevin Warsh’s Jackson Hole dilemma: Say too much, too little, or just enough

Kevin Warsh is preparing to deliver his first Jackson Hole speech as Federal Reserve (Fed) Chair on Friday, and expectations extend well beyond whether interest rates will be raised or left unchanged in September.