Forex Today: US Dollar benefits from risk aversion to start the week
Here is what you need to know on Monday, August 14:
The US Dollar has gathered strength against its major rivals at the beginning of the new week, with safe-haven flows dominating the action in financial markets. The US Dollar Index, which closed the previous four weeks in positive territory, stretched its uptrend toward 103.00 and touched its highest level since early July. Monday's economic calendar will not offer any high-impact data releases and risk perception could continue to act as the main market driver.
US Dollar price today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | 0.11% | 0.13% | 0.16% | 0.30% | 0.02% | 0.30% | 0.04% | |
| EUR | -0.11% | 0.02% | 0.05% | 0.19% | -0.11% | 0.19% | -0.08% | |
| GBP | -0.13% | -0.02% | 0.02% | 0.16% | -0.13% | 0.16% | -0.10% | |
| CAD | -0.18% | -0.05% | -0.03% | 0.14% | -0.13% | 0.11% | -0.12% | |
| AUD | -0.30% | -0.19% | -0.18% | -0.14% | -0.28% | -0.03% | -0.27% | |
| JPY | -0.01% | 0.11% | 0.13% | 0.13% | 0.23% | 0.27% | 0.02% | |
| NZD | -0.27% | -0.19% | -0.16% | -0.14% | 0.00% | -0.28% | -0.26% | |
| CHF | -0.04% | 0.08% | 0.09% | 0.12% | 0.28% | -0.01% | 0.23% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
After warning of a $7.6 billion loss in the first half of the year on Friday, Chinese real estate giant County Garden Holdings announced that it will suspend the trading of 11 onshore bonds from Monday. The company shares lost nearly 20% on Monday, dragging down Hong Kong's Hang Seng Index by 2% with it. The Shanghai Composite Index fell 0.3% and the CSI 300 fell 0.75%. Moody's Investors Service warned that the crisis in County Garden could spill over to the country's other property and financial markets and delay the recovery of the troubled property sector.
Meanwhile, the Bank of Japan (BoJ) reportedly offered unlimited Japanese Government Bonds (JGBs) of 5-10 years of residual maturity at a fixed rate in the early Asian session on Monday. USD/JPY, which reached its highest level since November above 145.20, retreated below 145.00 following this development.
China sensitive Australian Dollar and New Zealand Dollar stay under bearish pressure to start the week. As of writing, NZD/USD was down 0.3% and trading at its lowest level in 10 months below 0.6000, while AUD/USD was losing 0.35% at 0.6475.
EUR/USD stays on the back foot and trades below 1.0950 in the European morning. The data from Germany showed earlier in the day that the Wholesale Price Index declined 2.8% on a yearly basis in July.
GBP/USD holds steady and consolidates last week losses below 1.2700. On Tuesday, the UK's Office for National Statistics will release labor market data ahead of Wednesday's highly-anticipated inflation report.
Following the previous week's slide, Gold price moves sideways at around $1,910 on Monday. The 10-year US Treasury bond yield stays above 4.1%, making it difficult for XAU/USD to stage a rebound.
Bitcoin continues to move in a narrow channel slightly below $29,500. Ethereum clings to small gains early Monday near $1,850 but struggles to make a decisive move in either direction.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
