This is what you need to know to trade today Tuesday, September 7:
The risk appetite extends for the second day in a row this Tuesday, while most of the Asian stock markets are recovering, awaiting the decision of the ECB and the monetary policy of the BOC. Meanwhile, a likely delay in the Fed’s downsizing plan and hopes for more stimulus from China keep investors buoyed.
The prevalence of an optimistic mood weighs on US Treasuries, driving up yields, which in turn proves the renewed decline in the US dollar across the board. The greenback is attempting another bounce, as markets weather the effects of the disappointing US NFP report. Futures pegged to US equities are also pointing higher, suggesting a positive start on Wall Street as traders return after a three-day weekend.
In the middle of the resurgent dollar demand, most of the major currency pairs have turned south, with the Antipodean currencies emerging as the main laggards. AUD/USD It falls back towards 0.7400 after rebounding to 0.7470, in an initial reaction to the RBA policy decision. The RBA kept rates unchanged at 0.10%, ensuring that there would be no rate hikes until at least 2024.
The recovery of EUR/USD it faltered at 1.1885 amid the rally in rally returns as it is now down towards 1.1860 / 50. Investors shift their focus to the German ZEW survey and the final Eurozone GDP review.
The futures of the S&P 500 they alternate between gains and losses around 4,535, while US 10-year Treasury yields consolidate Friday’s strong rally above 1.30%. The US dollar is staging a major rebound, following in the wake of the recovery in Treasury yields.
The GBP/USD falls back below 1.3850 despite upbeat Brexit news. The UK and the EU extended the post-Brexit grace period on Northern Ireland indefinitely. British Brexit Minister David Frost revealed a new extension, with no new deadline being set for the completion of the talks, according to The Guardian.
The gold price is retreating towards 1.815 dollars, after failing to find acceptance above $ 1,830, as all eyes remain on the ECB statement on Thursday.
The cryptocurrencies they are on the defensive. Bitcoin is trading near four-month highs above $ 52,000.
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