Forex Today: Upbeat Chinese data boosts mood, Boris’ bill passes first hurdle, Gold shines
- 15th September 2020
- Posted by: Hakeem
- Category: FOREX LATEST NEWS DAILY
Here is what you need to know on Tuesday, September 15:
Chinese figures beat estimates and joined coronavirus vaccine hopes in keeping the mood positive, weighing on the dollar and supporting stocks and gold. The UK’s controversial bill passed the first hurdle and pressures the pound. Several economic figures are due out as tensions mount ahead of the Fed.
Asian stocks and S&P500 500 futures are on the rise after China reported a 5.6% yearly increase in industrial output in August, while retail sales are up 0.5% YoY, also above estimates. The world’s second-largest economy also extended exemptions on some US goods imports, adding to the positive mood.
The US dollar is on the back foot, especially against the Australian dollar which is benefiting from Beijing’s data dump and relatively optimistic meeting minutes from the Reserve Bank of Australia.
Gold is on the rise, breaking out of range and hitting the highest since early September. Citibank says record pace of ETF investors demand, the weaker dollar and negative yields are also underpinning the precious metal.
GBP/USD is failing to benefit from the greenback’s decline. The House of Commons passed the controversial Internal Markets bill which violated the Brexit accord with the EU. Several members of Prime Minister Boris Johnson’s Conservative Party said they would vote against the legislation when it comes to a final read next week.
UK jobs figures are due out shortly, and they will likely show a modest uptick in unemployment. The fate of the furlough scheme and the Bank of England’s decision are awaited.
EUR/USD is on the rise, shrugging off rising COVID-19 cases in the old continent and benefiting from the European Central Bank’s lax approach to the exchange rate as expressed last week. The German ZEW Economic Sentiment is eyed.
Tensions are mounting ahead of Wednesday’s decision by the Federal Reserve – the last one before the elections. Updated forecasts for employment and |growth are awaited.
Ahead of the Fed, Tuesday’s publications include the Empire State Manufacturing Index for September and Industrial Production statistics for August.
USD/JPY is trading on low ground below 106, seemingly unaffected by the ascent of Yoshihide Suga to lead Japan. The outgoing prime minister’s right-hand man will assume office on Wednesday.
Oil prices are struggling to rise amid reports that OPEC+ countries are unlikely to deepen petrol production cuts.
Cryptocurrencies have been moving higher, with Bitcoin changing hands above $10,000