Forex Today: Sentiment sours again with safe havens in demand, NZD/USD crashes


Here is what you need to know on Wednesday, August 7th:
- Markets are stable after correcting higher on "turnaround Tuesday" but tensions are high. China has fixed USD/CNY just below 7.00, keeping the focus around its devaluation high. White House adviser Larry Kudlow said he still expects trade talks to resume in September. 
- Safe-haven flows have picked up again, with the Japanese yen gaining ground and gold hitting the highest since 2013 at $1,490. 
- Fed official James Bullard has said that the Federal Reserve should not respond to every move in the trade war and reduced expectations for further rate cuts. Bullard is known as a dove. His colleague Charles Evans will be speaking today.
- The New Zealand dollar has crashed by around 2% to below 0.6400 after the Reserve Bank of New Zealand shocked markets by slashing interest rates by 50 basis points to 1.00%. Governor Adrian Orr has said that uncertainty is rising around the US-Sino trade war is hurting business confidence and paralyzing activity. The move has been a huge surprise as it came after an excellent jobs report in the nation.
- AUD/USD has been dragged lower by the NZD sell-off and dropped below 0.67 – hitting the lowest in a decade. The Reserve Bank of Australia left interest rates unchanged on Tuesday but is now expected to act.
- Commodities are falling with Brent Oil entering a bear market, following the lead of iron ore.
- UK: Michael Gove, who is responsible for no-deal preparations, has blamed the EU of intransigence and reiterated that the UK is leaving on October 31st "deal or no deal." PM Boris Johnson's messages to his European counterparts have been that Theresa May's agreement must be scrapped. 
- Cryptocurrencies have retreated after an attempt to move higher, with Bitcoin trading below $12,000.
 

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!


Latest Forex News

Editors’ Picks

EUR/USD surges above 1.13 after ECB's stimulus boost

EUR/USD is trading above 1.13, the highest since mid-March. The ECB added €600 billion in fresh stimulus, more than expected. The bank's move joins German stimulus and hopes for a recovery. 

EUR/USD News

GBP/USD avances toward 1.26 amid improving mood

GBP/USD trades closer to 1.26, buoyed by USD dollar weakness stemming from a better market mood. US jobless claims have marginally disappointed yet other US figures are more upbeat. Markets are shrugging off concerns about a no-trade-deal Brexit.

GBP/USD News

Will race relations rock markets? election campaign, coronavirus, crippled economy all in the mix

America is divided by demonstrations against racial discrimination that come on the backdrop of the coronavirus epidemic and attempts for a recovery. Will this or something else eventually affect markets? Valeria Bednarik, Joseph Trevisani, and Yohay Elam have a lively discussion about all these topics.

Read more

Gold recovers further from 1-month lows, moves back above $1715 level

Gold added to its intraday gains and refreshed daily tops, around the $1718 region during the early North American session.

Gold News

WTI: Recovery remains capped below $37 mark amid OPEC+ uncertainty

WTI (July futures on Nymex) is ranging in the familiar trading band near mid-36s so far this Thursday, having failed yet another upside attempts just shy of the 37 mark.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures