What you need to know on Tuesday, September 21:
The US dollar is the overall winner at the beginning of the week, thanks to risk aversion. The concerns revolve around the Evergrande Group, China’s second-largest real estate developer by sales. The company’s shares plummeted at the weekly open by more than 10% as the company faces potential default as its liabilities total $ 305 billion and its effect on local and global financial systems.
EUR / USD briefly crossed the 1.1700 level and settled in the 1.1720 region, not far from the year’s low of 1.1663. The pound was one of the worst performers, with GBP / USD up 1.3639.
Commodity-linked currencies fell to new September lows against the dollar, with AUD / USD currently trading around 0.7240 and USD / CAD in the price zone of 1.2830. The USD / JPY pair fell to 109.31.
Gold prices rallied throughout the day, ending with gains in the $ 1,760 price zone. Crude oil prices rebounded from daily lows but ended the day in the red.
Wall Street posted heavy losses, with the DJIA falling 609 points at the end of the day.
The US Federal Reserve and the Bank of England meet this week. The People’s Bank of China will meet on Wednesday.
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