Forex Today: Dollar stabilizes in the NFP aftermath, Oil tumbles amid holiday-thinned trading
- 7th September 2020
- Posted by: Hakeem
- Category: FOREX LATEST NEWS DAILY
Here is what you need to know on Monday, September 7:
The US dollar steadied amid holiday-thinned market condition on Monday, as the dust settled over US Nonfarm Payroll (NFP) aftermath. The greenback saw good two-way businesses on Friday, initially rallying hard on upbeat US jobless rate and wage growth data. Although, the dollar turned south and reversed gains heading into the weekly closing, as the US stocks recovered.
The Asian equities traded mostly mixed as the sluggish close on Wall Street and US fiscal stand-off offset the optimism over jump in Chinese trade surplus and exports data. The Chinese stocks also remained weighed down by the sell-off in Semiconductor Manufacturing International Corporation (SMIC) stocks following reports that US is considering imposing controls on China’s state-owned firm, which escalated the Sino-American tech war.
Brexit: Concerns over no-deal flared-up over the weekend and hurt the pound, as GBP/USD tumbled towards 1.3200. UK Prime Minister (PM) Boris Johnson set out October 15 as the deadline to reach the Brexit deal or it will ‘move on’.
According to a Financial Times report, the UK is planning legislation that will override key parts of the Brexit withdrawal agreement while the European Union (EU) stand firm on its demand on fishing rights, immigration and state aid.
EUR/USD traded on the back foot below 1.1850, as investors remained cautious amid growing coronavirus cases in Europe and ahead of Thursday’s ECB monetary policy decision. Immediate focus now remains on the German Industrial Production and Eurozone Sentix Investor Confidence.
USD/JPY held steady above 106.00 while AUD/USD’s bounce remained capped below 0.7300 despite the upbeat Chinese trade data.
USD/CAD advanced towards 1.3100, underpinned by the sell-off in WTI prices. The US oil fell over 1.50% to fresh two-month lows just above $38.50. Saudi Arabia’s oil price cut combined with falling Chinese oil imports knocked-off the black gold.
Gold licked its wounds and kept the range below $1950.
Cryptocurrencies kicked-off the week on a negative note, with Bitcoin defending the $10K mark.