Forex Today: Optimism weighed on the dollar

FXStreet Team FXStreet

Here is what you need to know on Thursday, August 13:

The dollar edged lower on the back of prevalent optimism, as investors preferred safe-haven assets. Global indexes closed in the green, while US Treasury yields ticked marginally higher to a fresh one-month high.

The greenback appreciated only against the JPY, with the pair reaching 107.00

The US Congress has made no progress on a next aid package, but the market seems not worried about the issues. No news in the US-China war of words further supported the positive sentiment.

Coronavirus in the US: The number of new cases has been put on doubt as the country recovered an average fo 52,800 new daily cases over the last week, down 19% from the previous weekly average. Testing, in the same period, declined 12%.

UK data weighed on the Pound. Q2 GDP came in at -21.7%, slightly better than anticipated yet signaling the extension of coronavirus’ harm to the economy. Total Business Investment in the same period contracted 31.4%, much worse than the -0.1% expected. Also, the June Goods Trade Balance posted a deficit of £ 5.12 B. On a positive note, Industrial Production was up 9.3% in June, and down 12.5% when compared to a year earlier, both numbers better than anticipated.

Gold bottomed at $ 1,862 a troy ounce, recovering some ground afterwards to close the day unchanged around $1,913 a troy ounce.

Australia will publish its July employment data at the beginning of the Asian session.

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FXStreet Team

FXStreet

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