What to watch for on Tuesday, September 27:
The dollar maintained its bullish momentum and rallied at the start of the week, taking major pairs to new multi-year lows. The tight macroeconomic calendar exacerbated risk-related trading as central banks around the world insisted on fighting inflation at any cost.
The GBP/USD pair sank to a record low of 1.0317 and is now trading around 1.0690, still down. It was expected that the Bank England intervened, helping the recovery of the pair, although he did not. In fact, Governor Andrew Bailey repeated that they would not hesitate to modify interest rates if necessary to return inflation to the 2% target in a sustainable way in the medium term, adding that they are “closely monitoring” the evolution of the financial markets . However, he added that the latest developments will be evaluated at their next scheduled meeting.
EUR/USD is trading near a new two-decade low at 0.9549 as the EU sees no light at the end of the tunnel. The president of European Central BankChristine Lagardegave a speech in which he said they may have to take additional steps to deal with inflation.
Commodity-linked currencies also came under strong selling pressure. AUD/USD bottomed at 0.6437, while USD/CAD rose to 1.3807. The USD/CHF pair also rose, reaching 0.9965. USD/JPY ended the day at 144.55.
Spot gold tumbled on trades around $1,625 a troy ounce, while crude oil prices also fell sharply, with WTI now trading at $76.60 a barrel, nearing this year’s low of 74.25. $.
World stocks closed in the red amid panic selling. The FTSE was the exception, helped by the fall in the pound sterling. He added just 2 points.
US Durable Goods Orders and BC Consumer Confidence will be the stars on Tuesday.
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Source: Fx Street
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