What you need to know on Wednesday, July 21:
The gloomy market mood extended through the first half of Tuesday, improving somewhat during US business hours. Wall Street rallied as the three major indices trimmed a good chunk of Monday’s losses. However, the dollar remained strong and managed to record higher highs during the week against most major rivals.
As has happened lately, the euro was resilient to the general demand of the dollar, while the pound and the aussie had the worst results. The former is hit by Brexit jitters and covid-related headlines, while the latter suffered from Australian lockdowns that hurt economic progress.
As crude prices stabilized, the USD / CAD declined. The WTI closed at $ 67.40 a barrel, which helped the pair to settle around 1.2680 after breaking above 1.2800 earlier in the week.
Concerns about the spread of the Delta variant and warming US inflation remain top themes and could trigger another race to safety.
Yields on US Treasuries fell early in the day, recovering before the close of the day in green. The 10-year Treasury yield slumped to 1.126%, but closed the day at 1.20%.
Gold prices rose intraday, flirting with 1,825 before reversing and ending the day in the red at around $ 1,808.00 a troy ounce.