Forex today: US rates, US dollar and WTI take a hit
Forex today had US rates and the USD under pressure still since the Jackson Hole that has left markets wondering whether the Fed will indeed do anything as early as September in respect to the balance sheet or indeed hike as soon as December.
The US dollar was losing 0.53% by the close at 92.25 spot within a range between 92.18 and 92.55. The benchmark 10-year yields are down -0.41% at 2.151% at the same time. Sterling has been riding the coat tails of the euro (bank holiday in UK), trading at 1.2931, up +0.38% on the day while the euro is up 0.45% on the day at 1.1977 at the time of writing, with the bulls charged due to a lack of concern from the ECB over the strength of the euro, so far. However, The yen is weak due to a turn in risk sentiment, while USD/JPY is -0.10% on the day despite the rally compared last week's close. WTI has dumped on the back of Hurricane Harvey and USD/CAD was subsequently bid, +0.22% on the day. AUD and the Kiwi were up 0.38% and 0.22% respectively. Gold was at YTD highs due to the foggy Fed and copper continued on the bid after a bullish session in China, supportive of the Aussie.
Key events ahead in Asia
- July Labour Force Survey.
- July Family Income and Expenditure Survey (all households).
Key notes from US session
- Copper futures hits fresh almost three-year high on Monday
- Gold advances further above $1310, up more than 1%
- US Dollar Index extends slide, hits fresh 1-year lows near 92.00
- WTI keeps getting hit due to concerns over production capacity/Hurricane Harvey