Dollar hits 9-month high

“More people lost money waiting for corrections and anticipating corrections than the actual corrections.” - Peter Lync

 

 

HEADLINES

 

 

• U.S. dollar scales 9-month peak on Fed taper outlook, Delta variant
• EUR/JPY prints a fresh 6-month low
• Gold futures fall for a third session in a row
• S&P 500 rises as tech gains offset cyclical declines
• China Stocks in U.S. Resume Slide After Brutal Rout in Asia
• Haven demand to underpin USD, JPY and CHF – Rabobank

 

 

FOREX

 

 

U.S. dollar scales 9-month peak on Fed taper outlook, Delta variant

 

The U.S. dollar rose to a nine-month high on Thursday, as worries about widespread coronavirus infections and Federal Reserve meeting minutes showing it was considering reducing pandemic-era stimulus this year hit global stocks and commodity-linked currencies.

 

EUR/JPY prints a fresh 6-month low

 

Earlier in the session, [the EUR/JPY] price dipped toward a fresh 6-month low at 127.93, then retraced above 128.00. The pair remains under pressure amid risk-off market conditions weighing in the Euro and see flows toward safe-haven assets like the Japanese Yen. EUR/JPY broke out of its range and is trading underneath the 200-day moving average at 129.02.

 

 

COMMODITIES

 

 

Gold futures fall for a third session in a row

 

Gold futures declined on Thursday to tally a third loss in a row, pressured in part by strength in the U.S. dollar. Investors also reacted to minutes from the Federal Open Market Committee on Wednesday that showed that monetary policy makers were on track to begin unwinding parts of their easy-money programs later this year.

 

 

STOCKS

 

 

S&P 500 rises as tech gains offset cyclical declines

 

The S&P 500 rose in choppy trading on Thursday, with gains in tech shares countering losses in cyclical sectors, as investors took the pulse of the economic rebound and gauged when the Federal Reserve might temper its monetary stimulus. Tech also supported the Nasdaq, while economically sensitive sectors such as energy and materials were weak.

 

China Stocks in U.S. Resume Slide After Brutal Rout in Asia

 

Chinese stocks listed in the U.S. endured another day of selling after policymakers in China unleashed a fresh round of proposed regulations.

American depositary receipts for technology giants including Tencent Holdings Ltd. and Alibaba Group Holding Ltd. both tumbled more than 6% each on Thursday. This comes after a painful day of trading for Chinese tech firms listed in Asia, which saw the Hang Seng Tech Index briefly fall to the lowest level since its inception in July 2020 and Alibaba sink to a record low in Hong Kong.

 

 

ANALYSIS

 

 

Safe haven demand to underpin USD, JPY and CHF – Rabobank

 

“Expectations regarding global growth are still far from clear of the risk of negative covid related surprises and this factor suggests safe haven currencies could remain in favour.”

“While the USD in recent years have been sensitive to global growth fears and to the broad performance of EM, the JPY often has a heightened sensitivity regarding regional geopolitical factors. This may test the current forecast that USD/JPY could push moderately higher on a 3 to 6 month view.”

 

 

CHART

 

 

 

US dollar / Canadian dollar – Daily Candlesticks

Source: GKFX Prime Metatrader 4

USD/CAD is attempting a break above its July peak after having held above the broken 200 day moving average and long-term falling trendline. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

SOURCE

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/safe-haven-demand-to-underpin-usd-jpy-and-chf-rabobank-202108191140
https://www.fxstreet.com/news/eur-jpy-prints-a-fresh-6-month-low-targets-12800-202108192018
https://www.reuters.com/world/china/dollar-hits-9-month-high-fed-track-taper-this-year-2021-08-19/
https://www.reuters.com/article/usa-stocks/us-stocks-sp-500-rises-as-tech-gains-offset-cyclical-declines-idUSL1N2PQ27U
https://finance.yahoo.com/news/china-stocks-u-resume-slide-142540366.html
https://www.marketwatch.com/story/gold-gets-a-lift-as-global-stocks-take-a-hit-11629375433