Forex Today: King dollar holds the rein amid cautious optimism, eyes on US CPI
- 11th September 2020
- Posted by: Hakeem
- Category: FOREX LATEST NEWS DAILY
Here is what you need to know on Friday, September 11:
The US dollar consolidated Thursday’s sharp recovery, in the wake of the resurgent haven demand, courtesy of the sell-off in the US stocks. The sentiment around the dollar was also underpinned by the US Senate’s rejection of the slimmed-down Republican coronavirus relief package.
Asian equities failed to shake off the bearish mood on the Wall Street slump. Meanwhile, the renewed US-Sino tensions kept the traders unnerved. The US revoked visas for more than 1,000 Chinese nationals citing security risks.
Among other negative developments, President Donald Trump said, “The deadline set for the Chinese company ByteDance to sell the popular short-video app TikTok’s US assets would not be extended.” Separately, Trump threatened to withdraw the US from the World Trade Organization (WTO).
On Indo-Sino escalation, key ministers from both sides agreed that troops should quickly disengage and ease tensions.
Brexit: GBP/USD attempted a relief bounce above 1.2800 ahead of UK monthly GDP report. The cable slumped to a seven-week low of 1.2774 on Thursday, as the Brexit crisis deepened following the emergency meeting fallout. Odds of a no-deal Brexit scaled up after the European Union (EU) gave a three-week ultimatum and threatened legal action if the UK still pushed for the Internal Market Bill. The talks are likely to continue next week, as the negotiators will meet in Brussels.
EUR/USD posted small gains well above 1.1800. The main currency pair reversed the entire European Central Bank (ECB) monetary policy decision-led rally. The euro jumped about 80-pips after the ECB upgraded the growth and inflation forecasts while adding that it’s not concerned about the recent appreciation of the single currency.
USD/JPY remained within a familiar trading range above 106.00, with the yen unimpressed by the improved coronavirus situation in Tokyo. AUD/USD rebounded to 0.7280 while the kiwi followed suit.
USD/CAD extended the drop below 1.3200, as WTI bounced-back above the $37 mark. Oil prices tumbled on an unexpected rise in the US stockpiles and rising demand concerns for oil and its products amid the ongoing coronavirus crisis.
Gold returned to the negative territory following rejection above $1950 once again. Focus shifts to the US CPI release for fresh impetus.
Cryptocurrencies’ remained under pressure, with Bitcoin defending the $10,200 level.