Forex Today: King dollar holds the reigns, gold licks wounds ahead of US Jobless Claims
- 20th August 2020
- Posted by: Hakeem
- Category: FOREX LATEST NEWS DAILY
Here is what you need to know on Thursday, August 20:
The US dollar kept its recovery momentum intact on Thursday, consolidating Wednesday’s solid comeback led by a strong bond auction, further accelerated by the FOMC July meeting’s minutes.
FOMC minutes showed that the Fed officials raised doubts over the potential benefits of the yield curve control policy while reiterating that a “highly accommodative stance of monetary policy likely needed for some time.”
The Asian equities followed their Wall Street peers lower, as the Fed dashed hopes of adding unconventional measures to their policy tool kit. S&P 500 futures dropped 0.50% to around 3,350 region, reflective of the risk-off market mood. The Treasury yields remained under pressure amid uncertainty over the US economic recovery.
EUR/USD consolidated the sell-off to 1.1830, with the risks skewed to the downside amid coronavirus resurgence in Europe.
GBP/USD fell back below 1.3100 due to looming Brexit concerns, especially in light of the latest disagreements over the UK truckers’ access to Europe.
USD/JPY held steady above 106.00, divided between negative risk tone and dollar strength.
AUD/USD bounced-back towards 0.7200 after a Bloomberg report cited that the US and China plan resumption of the delayed trade talks. NZD/USD was underpinned by the coordinated efforts by the RBNZ and NZ government to support businesses. The Chinese central bank’s rates on-hold decision had little impact on the Antipodeans.
USD/CAD held onto gains above 1.3200, helped by falling WTI prices. The US oil ignored President Donald Trump’s readiness to restore nearly all UN sanctions on Iran.
Oil weakened below $43 after the OPEC+ Joint Ministerial Monitoring Committee (JMMC) said that the pace of oil market recovery appeared to be slower than expected amid with growing risks of a prolonged second wave of COVID-19.
Gold struggled to extend the bounce above $1950 after dropping 3.67% on Wednesday.
Cryptocurrencies remained pressured to the downside, with Bitcoin trading below $11,800.