Here is what you need to know on Thursday, August 20:
The US dollar kept its recovery momentum intact on Thursday, consolidating Wednesday’s solid comeback led by a strong bond auction, further accelerated by the FOMC July meeting’s minutes.
FOMC minutes showed that the Fed officials raised doubts over the potential benefits of the yield curve control policy while reiterating that a “highly accommodative stance of monetary policy likely needed for some time.”
The Asian equities followed their Wall Street peers lower, as the Fed dashed hopes of adding unconventional measures to their policy tool kit. S&P 500 futures dropped 0.50% to around 3,350 region, reflective of the risk-off market mood. The Treasury yields remained under pressure amid uncertainty over the US economic recovery.
EUR/USD consolidated the sell-off to 1.1830, with the risks skewed to the downside amid coronavirus resurgence in Europe.
GBP/USD fell back below 1.3100 due to looming Brexit concerns, especially in light of the latest disagreements over the UK truckers’ access to Europe.
USD/JPY held steady above 106.00, divided between negative risk tone and dollar strength.
AUD/USD bounced-back towards 0.7200 after a Bloomberg report cited that the US and China plan resumption of the delayed trade talks. NZD/USD was underpinned by the coordinated efforts by the RBNZ and NZ government to support businesses. The Chinese central bank’s rates on-hold decision had little impact on the Antipodeans.
USD/CAD held onto gains above 1.3200, helped by falling WTI prices. The US oil ignored President Donald Trump’s readiness to restore nearly all UN sanctions on Iran.
Oil weakened below $43 after the OPEC+ Joint Ministerial Monitoring Committee (JMMC) said that the pace of oil market recovery appeared to be slower than expected amid with growing risks of a prolonged second wave of COVID-19.
Gold struggled to extend the bounce above $1950 after dropping 3.67% on Wednesday.
Cryptocurrencies remained pressured to the downside, with Bitcoin trading below $11,800.
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.