Forex Today: Sluggish growth and mounting coronavirus concerns


Here is what you need to know on Monday, September 21:

The US dollar recovered some ground at the end of the week on the back of risk-aversion but remained weak. Most major pairs finished a second consecutive week unchanged. The biggest winner was the JPY amid increased demand for safety.  

Concerns gyrated around the absence of a coronavirus aid package in the US, and renewed tensions between the country and China, after Washington ordered Google and Apple to remove  TikTok and We-Chat from their platforms as of Sunday. Sluggish global growth amid the ongoing pandemic adds to the gloomy picture. On a positive note,  Secretary of Commerce Wilbur Ross announced this Sunday a one-week delay until September 27, amid a developing deal between the Chinese company and Oracle.

The Sterling remained week despite some Brexit hopes. Unease grew after the UK  put under lockdown some cities in the north, and, over the weekend, PM Johnson was said to be considering tightening restrictions as they are now “seeing a second wave.” News suggests that the UK will ban households mixing and reduce opening hours for pubs.

Wall Street finished a third consecutive week in the red, with the slump led by tech shares. US Treasury yields got to bounce on Friday but finished the week little changed.

Australian PM Morrison said he is expecting to see a jobs bounce-back as Victoria prepares to reopen. New coronavirus cases in the area fell to 14 on Sunday, the lowest in three months, supporting plans to start lifting restrictions on September 28. His comments may spur some risk-appetite at the weekly opening.

Europe heads into the autumn facing a coronavirus second wage. Several countries are seeing a higher number of daily cases that they did in March/April. Local lockdowns are being under study in the UK and Spain, while France reported roughly 13,000 new cases, its highest on record.

On-hold central banks put a cap to gold’s demand. The bright metal continues to trade around $1,950.00 a troy ounce.

Crude oil prices closed the week with gains, with WTI around $41 a barrel.

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

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD drops below 1.1850 amid growing covid concerns

EUR/USD has dropped under 1.1850 as European coronavirus cases hit records. France exceeded 50K daily cases and Spain announced a state of emergency. US fiscal stimulus talks remain stuck ahead of the elections. 

EUR/USD News

GBP/USD pressured towards 1.3000 amid downbeat market mood

GBP/USD has been extending its losing streak amid a surge in COVID-19 cases in the UK and elsewhere. Investors are shrugging off reports of progress in Brexit talks. 

GBP/USD News

XAU/USD pushed and pulled in jittery market conditions

The price of gold has been testing the bearish commitments above the $1,900 psychological level following a brief spell below it, printing a low of $1,891.50.

Gold News

Bitcoin vs gold: Safe haven battle

A new idea has been floating around in Safe Haven Trading. Well, it’s not entirely new, but it’s quite controversial to say the least. For the longest time, gold has been considered to be the purest form of safe haven trading. 

Read more

WTI heavily on the back foot, but right tail remains fat

The coronavirus pandemic gets a new lease of life on the commodities market's risk barometer and at the time of writing, WTI is trading at $38.52 and has travelled from a high of $39.72 to a low of $38.31.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures