What you need to know on Tuesday, August 17:
The dollar posted uneven gains against high-yielding rivals but declined against safe-havens as risk aversion dominated financial markets earlier in the week. Disappointing Chinese data, tensions in the Middle East, the spread of the Delta coronavirus variant in the US, and soft macroeconomic data, were behind the market’s bad mood.
EUR / USD fell modestly from around 1.1800 to settle around 1.1770, while GBP / USD stabilized around 1.3840 / 50. Commodity currencies suffered the most, despite a late Wall Street rebound and new highs for gold.
US indices opened with heavy losses, cutting them throughout the day. The DJIA and the S&P hit new all-time highs. On the other hand, US Treasury yields fell amid rising bond prices.
Gold advanced, ending the day at $ 1,787 a troy ounce. Crude oil prices rebounded from daily lows but still ended the day in the red, with WTI currently trading at $ 67.10 a barrel.
The macroeconomic calendar was tight, with the focus on US retail sales, to be released on Tuesday. A dismal number could further stimulate risk aversion.
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