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.
GBP/USD stayed above 1.2800 despite the UK monthly GDP report disappointment. 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 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 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.
WTI bounced-back above the $37 mark after 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 trade below $1,950 once again.
There is nothing of note released in the session ahead. Later during the early NA session, the release of the latest US consumer inflation figures at 12:30 GMT will be eyed.
US Dollar Holds on to gains amid US stocks sell-off – Eyes on US CPI
Published on 2020-09-11 07:47
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