What you need to know on Thursday, September 30:
The American dollar kept strengthening on the back of growth-related concerns and speculation the US Federal Reserve will soon start trimming its massive stimulus programs. US Federal Reserve chief Jerome Powell repeated his statement before Congress. As he did yesterday, Powell noted that the Central Bank is quite close to achieving its goals on employment, which will allow policymakers to start retrieving financial support. He reiterated that inflation spikes are mostly due to supply constraints meeting very strong demand and that he expects it to be temporal. If inflation remains too high for too long, the Fed would respond.
The EUR/USD pair fell sub-1.1600, to trade at its lowest in over the year. GBP/USD also fell to a fresh 2021 low of 1.3411, holding nearby as the day came to an end, with the pound affected by the fuel crisis.
US Treasury yields reached fresh multi-month highs ahead of the opening, following the poor performance of Asian equities. The yield on the 10-year note hit 1.56% to finally stabilize around 1.54%. The USD/JPY pair currently trades around the 112.00 threshold.
Meanwhile, news indicated that Evergrande, the troubled Chinese property giant, missed a coupon payment of $45.2 million after reportedly missing another payment last week. The company has a 30-day grace period for each payment, so it could become a problem if the situation continues in the upcoming weeks.
Commodity-linked currencies were also under strong selling pressure. AUD/USD stands near its daily low, around 0.7170, while USDCAD hovers in the 1.2750 price zone.
Gold fell to $1,721.59 a troy ounce, while crude oil prices held ground. WTI is up a few cents, currently trading at $74.80 a barrel.
Asian indexes closed with losses, although European and American indexes posted modest intraday gains. China will release its official PMIs figures early on Thursday, which may set the tone for major pairs.
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