This is what you need to know to trade today Thursday 19 August:
The US dollar has been rising after the Fed meeting minutes suggested tapering is on the agenda. EUR / USD hit the lowest level since November 2020 and the Australian dollar does not benefit from the optimistic employment figures. Gold is under pressure and oil is sinking to its lowest level since May. The employment figures in the United States and the news about the covid will center the attention.
Tapering is coming: Minutes from the Federal Reserve’s July meeting suggested that the central bank is leaning toward reducing its bond-buying program as early as 2021. Many on the committee judged that the threshold of “substantial additional progress”.
The dollar initially fell since starting the adjustment this year is not a shock and also because Fed officials tend to separate the end of their purchases with the increase in rates. However, the USD gained ground later.
Demand for the dollar also increased due to safe haven cash flows related to technology in China and the increase in global cases of COVID-19. A study showing that the effectiveness of vaccines decreases over time is also contributing to the gloomy mood.
The EUR/USD it has fallen below 1.17, the lowest level since November. The increase in covid cases in Germany is increasing the pressure. The GBP/USD it is struggling around 1.37, also in response to UK inflation figures below expectations.
The AUD/USD it has fallen below 0.72 despite optimistic employment figures in Australia. The unemployment rate fell to 4.6% in the country. The USD / CAD it has exceeded 1.27, also as a result of the collapse in oil prices. The crude WTI it is trading below $ 64 at time of writing, the lowest level since May.
The cryptocurrencies They are under pressure, in part due to a warning from Robinhood, which warned that your income could decline if you make less money trading digital assets, especially Dogecoin. Bitcoin is trading around $ 44,000 and Ethereum just under $ 3,000.
The Unemployment claims in the United States They will show a smaller decrease and the Philadelphia Fed manufacturing index for August will remain close to 21.9 points in July.
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