Forex Today: US dollar seizes control as risk aversion returns, a busy docket ahead


Here is what you need to know on Tuesday, July 14:

Broad US dollar strength extended into Asia, as risk-averse market conditions persisted amid intensifying coronavirus fears and US-China tensions. The Asian equities followed the late sell-off on Wall Street while the US stock futures struggled with its recovery.

The sentiment soured in the NY trading after the state of California imposed new restrictions on businesses as coronavirus cases and hospitalizations soared. The shutdown reignited concerns over the growing virus risks on the economic recovery prospects.

Meanwhile, the souring US-China diplomatic ties over the Hong Kong and South China sea issues also dampened the market mood. China accused the US of 'inciting confrontation' after Washington rejected expansive claims in the disputed sea for the first time.

Investors also remained cautious ahead of the US banks’ earnings reports and inflation data due later this Tuesday.

Across the fx board, AUD/USD steadily climbed back to 0.6950 on solid Chinese imports and exports data. The kiwi, however, remained depressed below 0.6550. The Canadian dollar lost ground on the back of over a 2% drop in WTI prices. Oil fell due to demand recovery fears and OPEC+ output cuts easing talks.

EUR/USD traded better bid around 1.1350, expectant of an improvement in the German ZEW Current Situation Index. GBP/USD wavered in a narrow range around 1.2550 ahead of the UK monthly GDP and manufacturing data.

USD/JPY, however, traded on the back foot but held onto the 107 level. Japan is likely considering declaring a state of emergency, as new infections continue to grow.  

Gold posted small losses below $1,800 a troy ounce, as broad US dollar strength capped the upside attempts.

Cryptocurrencies remained heavy, with Bitcoin trading below $9200.

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 loses 1.1800 amid escalaing US-Sino tensions

EUR/USD dips sub-18 after the US reported an increase of 1.763 million jobs in July, better than estimated but pointing to a deceleration. Escalating Sino-American tensions are boosting the dollar and fiscal talks are eyed. 

EUR/USD News

GBP/USD resumes decline, weighed by UK concerns, US-China conflict

GBP/USD trades at fresh weekly lows below 1.3050 as the dollar got a sudden boost from mounting tensions between the world's two largest economies. UK Chancellor Rishi Sunak said the furlough scheme that is underpinning the economy cannot last forever.

GBP/USD News

Gold: Meteoric rally falters, closes the week below $2050

Dollar comeback poured cold water on gold’s record-breaking rally. US-China woes, US stimulus deadlock and upbeat NFP boosted the USD. The focus stays on US-China trade talks amid light US docket next week.

Gold News

Bitcoin may extend the recovery once Gold resumes the rally

Gold retreated from the recent highs, but the sentiments are still bullish. Cryptocurrencies resumed the upside, some altcoins are demonstrating strong gains. ETH/BTC stopped the downside correction and settled at $0.03300.

Read more

WTI extends slide toward $41, on track to post weekly gains

Crude oil prices continued to fall on Friday and the barrel of West Texas Intermediate (WTI) touched a daily low of $41.05 before recovering modestly.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures