This is what you need to know to trade today Friday August 20:
Markets have returned to risk-off sentiment, driven primarily by rising covid cases in the United States, Germany, Japan, and elsewhere. However, the dollar has stabilized, consolidating the gains of previous days. Speculation about the Fed’s tightening remains frequent. Cryptocurrencies are holding onto high ground and oil extends its declines.
The Delta variant of COVID-19 it continues to spread rapidly in the United States, overwhelming hospitals in some southern states and infecting three vaccinated US senators. Concerns about the rising death toll and the fact that the White House has chosen to open booster vaccines to all ages is causing concern.
The dollar has been consolidating its gains driven by Delta and also by the passage of the Federal Reserve towards an announcement of the reduction in the purchase of bonds already in September. Fed Chairman Jerome Powell is scheduled to speak Friday, August 27, during market hours.
The EUR/USD is struggling below 1.17, while Germany recorded the highest number of daily coronavirus cases in three months. The Eurozone locomotive also saw producer prices rise at a faster rate than expected.
The USD/JPY is under pressure below 110 as the yen receives safe-haven monetary flows amid rising cases in Japan. China contributed to the bleak mood by tightening the nuts on tech companies with a new data sharing law. Furthermore, the central bank refrained from lowering its interest rates.
The AUD/USD it is struggling to hold at 0.71 after restrictions in Sydney were tightened. Investors ignored Thursday’s upbeat Australian jobs report. The NZD / USD It is battling 0.68 after New Zealand identified additional covid cases and extended its national lockdown.
Canada will report retail sales figures later in the day. USD / CAD is approaching 1.29 due to the strength of the dollar and falling oil prices. The WTI it’s hovering below $ 64 at the time of writing.
The cryptocurrencies have been consolidating their gains early Friday, with the Bitcoin holding above $ 47,000 and the Ethereum holding on to $ 3,200.
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