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

Gold fades upside momentum towards $1,850 amid mixed catalysts

Gold prices ease from $1,842.36 as risk-on dwindles. The yellow metal rose to the nine-day high the previous day as the US dollar weakness, coupled with the market optimism, favored the bulls.

Gold news

AUD/USD ignores weak Aussie retail sales data, trades near 0.7440

AUD/USD trades near 0.7430, representing a 0.84% weekly gain. The bearish US dollar sentiment helps the AUD/USD pair shrug off the weaker-than-expected Aussie macro data released soon before press time and consolidate near 0.7440

AUD/USD News

USD/JPY: Bearish bias across Monthly, Weekly charts

USD/JPY trapped between daily support and resistance against bearish backdrop. Yen is under pressure across the longer-term time frames and is trending within a weekly channel to the downside.

USD/JPY News

WTI bulls ignore downbeat comments from Russia’s Novak, eye $46.00

WTI wavers near the upper end of one-week-old bullish flag. The black gold remains positive on a daily basis while taking rounds to the November month’s high, also the highest since March. Risk-on mood, US dollar weakness favor the commodities, US employment data awaited.

Oil News

Extra week of Black Friday!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex MAJORS

Cryptocurrencies

Signatures