What you need to know on Wednesday, August 25:
The dollar was down for the second day in a row as the market sentiment remained positive. Stock gains were modest as investors grow wary ahead of the Jackson Hole Symposium and what the head of the US Federal Reserve, Powell, has to say about the future of monetary policy. The timing of the downside is in the eye of the storm and Powell may disappoint investors.
Commodity-linked currencies were the best performers, advancing the most against the dollar, helped by stable gold prices and firmer crude oil prices. AUD / USD is trading around 0.7250, while USD / CAD is at 1.2590. On the other hand, spot gold closed at $ 1,805 a troy ounce, while WTI closed at $ 67.60 a barrel.
The EUR / USD pair struggles around 1.1750, while GBP / USD and USD / JPY ended the day unchanged.
Yields on US Treasuries rose, with 10-year yields approaching 1.30% by the end of the day.
The Delta variant of the coronavirus weighs on market sentiment. The number of cases in Israel skyrocketed, while the UK reported more than 30,000 new coronavirus infections and 174 new deaths, with the number of deaths recorded in England and Wales in the week ending August 13 at the lowest level. high since late March. The situation is also getting worse in the United States.
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