Forex Today: Dollar stands tall amid Delta covid variant, US stimulus woes, Bitcoin stabilizes

Dhwani Mehta FXStreet

Here is what you need to know on Wednesday, September 8:

The market mood remains tepid amid mostly lower Asian markets, as they followed a lacklustre performance on Wall Street overnight. Spiking cases of Delta covid variant in the US and potential restrictions reignited economic concern, souring the investors’ sentiment while boosting the US dollar’s safe-haven appeal. The S&P 500 futures post small gains while Treasury yields remains on the defensive.

US President Joe Biden on Thursday will present a six-pronged strategy aimed at fighting the spread of the highly contagious Delta variant and increasing covid vaccinations.

Gold price keeps the downside intact below $1800 amid the US dollar’s strength and uncertainty over the infrastructure spending bill. According to CNN News, “House Republicans could face increased pressure to vote against a bipartisan infrastructure package when they return to Washington later this month.”

Across the fx board, EUR/USD stalls its rebound and turns south once again towards 1.1800, despite upbeat Eurozone growth numbers, as the US dollar price action dominates, in absence of relevant first-tier macro news.

GBP/USD remains pressured towards 1.3750, as the Brexit concerns continue to haunt the pound traders. Post-Brexit Supply chain disruption is leading to fears of water treatment chemical shortage.

The UK government has given polluters the green light to dump raw sewage into rivers and the sea as Brexit and Covid disrupt normal water treatment, per The Independent. Meanwhile, the UK PM Boris Johnson’s tax hike plan continues to weigh.

Cryptocurrencies are licking their wounds after Tuesday’s crash, with Bitcoin looking to stabilize around $46,000. Technical difficulties with El Salvador’s Bitcoin wallet led to delays with the rollout of the Chivo Wallet, which triggered a massive sell-off across the crypto market a day ago.

Like this article? Help us with some feedback by answering this survey:

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.

Week ahead: US CPI might challenge the geopolitics-boosted Dollar

Geopolitics may try to steal the limelight from US data. A possible US Supreme Court ruling on tariffs could dictate market movements. Dollar strength might be tested if investors refocus on Fed expectations. A crammed data calendar next week, US CPI comes on Tuesday; Fedspeak to intensify. Euro weakness persists, lingering risk of deterioration in US-EU relations.

Week ahead – US CPI might challenge the geopolitics-boosted Dollar

Geopolitics may try to steal the limelight from US data. A possible US Supreme Court ruling on tariffs could dictate market movements. A crammed data calendar next week, US CPI comes on Tuesday; Fedspeak to intensify.

XRP trades under pressure amid weak retail demand

XRP presses down on the 50-day EMA support as risk-averse sentiment spreads despite a positive start to 2026. XRP faces declining retail demand, as reflected in futures Open Interest, which has fallen to $4.15 billion.