Markets lose to US politics and Federal Reserve. China and the United States talks for postponement are welcomed. Nevertheless, uncertainty looms over everything.
The dollar is caught between pressure from worries concerning the lagging U.S. economic recovery and support from rising United States safe-harbor demand and bond yields. Thus, on Monday, the US dollar started where it left off last week.
Uncertainty muted a boost to sentiment from the postponement of the China-United States trade deal review. This leaves the deal intact, ahead of a week that includes Federal Reserve minutes and the Democrats’ nomination convention.
On Monday, the dollar traded under gentle pressure at 93.039 against a basket of currencies. Thus, it was roughly in the middle of the range it has held after it had hit a two-year low at the end of July.
The risk-sensitive Australian dollar inched up to a three-session high of $0.7194. Nevertheless, it remained contained in the channel it has traded in for a week.
The rupiah and the won, and other Asian currencies, edged lower. Meanwhile, due to last week’s dovish language from the central bank, the kiwi remained weighted to $0.6534.
The yen, having dipped last week as a jump in United States yields drew Japanese investment to Untied States Treasuries, was steady at 106.54.
China and the US delayed a Saturday review of their Phase 1 trade deal.
Rodrigo Catril is a National Australia Bank senior Foreign exchange strategist. He said that it is good news in the sense that it is something they can place on the back burner for now.
Nevertheless, he added that other uncertainties are coming up that need to be resolved. Thus, he pointed to United States politics as a presidential election loom. Furthermore, new virus hot spots in Europe can challenge the perception that the euro is on an uptrend.
This is leading news of the market.
Key Points: Nio's shares hit 44.20 HKD, up 20%, with electric vehicle deliveries up 134.6% year-on-year to 15,620. BYD leads…
Key Points: Ethereum fell sharply from $3,355 to a low of $2,813, reflecting high volatility and sensitivity to market dynamics.…
Key Points Nikkei 225 slightly fell by 0.1%, while the Hang Seng index surged by 2.4%. USD/JPY increased slightly, highlighting…
Key Points: Gold prices rose on MCX India to ₹71,278/10 gm and COMEX US to $2,328/oz. The US Dollar Index…
Key Points: USD/MXN closed at 17.1268, down by 0.64%. The US Dollar Index increased by 0.67%, highlighting its strength at…
Key Points AUD/USD Pair shows early recovery, currently priced at 0.6525, indicating a subtle improvement and a possible shift in…
This website uses cookies.