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

The US dollar held onto the recent upside, as investors remained bearish on the euro amid dovish ECB expectations while no-deal Brexit fears battered the British currency.  Meanwhile, rising US election risks and US-China tensions underpinned the haven demand for the greenback.

The New York Times reported that the US is considering banning some or all products made with cotton from China’s Xinjiang province. On Monday, US mulled imposing controls on China’s state-owned firm, escalating the Sino-American tech war.

The Asian equities were a mixed bag, ditching the higher close on the European indices. The main laggard remained the Chinese stocks amid renewed US-Sino tensions. Japan’s Nikkei 225 index gained despite an annualized 28.1% GDP contraction in the April-June quarter.    

Brexit: GBP/USD hit fresh two-week lows just above 1.3100, as the sell-off extended on growing Hard-Brexit fears. All eyes remain on the eighth round of Brexit negotiations, starting later on Tuesday.  

No-deal Brexit fears intensified following the revelation that the UK is planning legislation that would override critical parts of the withdrawal agreement. The European Union (EU) warned UK of a no-trade deal if it tried to alter the divorce deal.  Also, UK Prime Minister (PM) Boris Johnson announcing October 15 as the deadline to reach the deal weighed heavily on the pound.

EUR/USD battled 1.1800, as the common-currency remained on the offers amid expectations of verbal intervention by the ECB on Thursday. In the meantime, the traders will look forward to the German Trade Balance, Eurozone GDP and Employment data.

USD/JPY was side-lined around 106.00 amid falling Treasury yields and Japan’s economic contraction. AUD/USD also traded in a familiar range around 0.7275, shrugging-off mixed Australian NAB Survey and US-China tussle.

USD/CAD extended the recovery beyond 1.3100, as WTI tumbled nearly 2%. The US oil consolidated near two-month lows below $39 amid slowing Chinese oil imports and Saudi’s deepest monthly price cuts in five months for Asia.

Gold traded on the back foot around $1930, with strong bearish momentum indicated by the technical chart.

Cryptocurrencies’ downward trend continued, with Bitcoin holding above the $10,200 mark.

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.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD has lost its bullish momentum after having climbed above 1.0570 with the initial reaction to the US data in the American session and retreated toward the mid-1.0500s. On a weekly basis, the pair remains on track to close in positive territory. 


GBP/USD struggles to hold above 1.2300

GBP/USD struggles to hold above 1.2300

GBP/USD has edged lower following a jump above 1.2300 in the early American session on Friday. The market mood remains upbeat ahead of the weekend with Wall Street's main indexes posting strong daily gains on upbeat US data. 


Gold stays below $1,830 as US yields edge higher

Gold stays below $1,830 as US yields edge higher

Gold continues to fluctuate below $1,830 on Friday and looks to close the second straight week in negative territory. Fueled by the risk-positive market environment, the benchmark 10-year US Treasury bond yield is up more than 1% on the day, limiting XAU/USD's upside.

Gold News

Why Cardano could surprise over the weekend

Why Cardano could surprise over the weekend

ADA  set to close out the week with a gain on the workday trading week and over the weekend? Central banks signaled that the rate hike cycle is ending, meaning less stress and tight conditions for trading, opening up room for some upside potential with Cardano set to pop above $0.55 and test a significant cap.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!