Forex Today: Gold cheers reduced US dollar’s demand amid stimulus hopes
- 25th September 2020
- Posted by: Hakeem
- Category: FOREX LATEST NEWS DAILY
Here is what you need to know on Friday, September 25:
The US dollar held steady, following the retracement from two-month highs, as persistently higher US Jobless Claims offset optimism over a likely US fiscal stimulus deal. Also, a mixed message from the US Federal Reserve (Fed) policymakers on the inflation and employment front left investors in a tipsy.
According to a key lawmaker, Democrats in the US House of Representatives are working on a $2.2 trillion coronavirus relief aid that could be voted on as soon as next week.
Asian stocks traded mixed, with the Chinese stocks the main laggard after the country’s No. 2 property developer warned of a cash crunch. Reports that Novavax Inc launched a clinical late-stage trial of coronavirus vaccine in the UK offered some support to the traders.
Among other developments, the US Justice Department ordered a San Francisco federal judge to allow the government to ban WeChat for download in app stores pending an appeal.
Across the fx board, AUD/USD extended the bounce above 0.7050 despite a drop in the Australian Trade Surplus last month while USD/JPY once again failed above 105.50 after Japan confirmed the easing of entry restrictions for new arrivals into the country.
EUR/USD consolidated the bounce to 1.1688, with the risks still skewed to the downside amid intensifying virus spread in Europe. Germany reported 2,321 new infections, the highest in five months.
GBP/USD showed some signs of life above 1.2750 amid UK Finance Minister Rishi Sunak’s job protection scheme and renewed Brexit worries. The Financial Times (FT) France’s Europe minister Clément Beaune dismissed the UK’s ‘intimidation’ on a post-Brexit deal. BOE’s Q3 Quarterly Bulletin will be in focus.
Gold extended the recovery to $1875 amid the dollar’s pullback, ahead of the US Durable Goods data. WTI held gains near $40.50 but headed for a weekly loss.
Cryptocurrencies’ returned to the red, with Bitcoin downed to $10,650.