What you need to know on Wednesday, September 8:
The US dollar advanced against all of its main rivals. The EUR was the strongest, as it lost a modest 40 pips. Commodity currencies and safe-haven CHF and JPY lost the most ground against the dollar.
GBP / USD also fell back but is trading a few pips below the 1.3800 level as Saunders comments from the BOE partially offset the drop. Bank of England lawmaker Michael Saunders, who said the UK doesn’t need as much stimulus as it used to, adding that “maybe” it’s right to think of rates going up “in the next year or so.
Stocks had a bad day, with most of the European and US indices closing in bearish numbers. The Nasdaq Composite managed to post some modest gains at the end of the day up 10 points. The spread of the Delta coronavirus variant fuels concerns about economic growth.
Yields on US government bonds skyrocketed. The 10-year Treasury yield peaked at 1.385% to end the day at 1.37%.
The XAU / USD is trading around the 50% retracement of its last bull run measured between 1,677.75 and 1,916.50 at around 1,797. The risk of a bearish extension has increased, according to technical readings.
Crude oil prices were also under selling pressure for the third day in a row. Market moodiness and news from Saudi Arabia’s state oil giant Aramco, which announced on Sunday that it lowered its official selling price (OSP) of all grades of crude to the Asian refinery in October, weighed on prices. The WTI closed at $ 68.30 a barrel.
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