What you need to know on Friday, August 20:
Substantial demand for safety pushed the USD higher against most major rivals, with EUR / USD and AUD / USD falling to new 2021 lows. The USD / CAD pair is trading at its highest since January, while GBP / USD is at new August lows. As the US session ended, the USD looks set to extend its advance into the weekend.
The dollar’s advance was a continuation of Wednesday’s movements after the FOMC Minutes, as the document hinted at the next drawdown. Better-than-expected US employment figures added to the strength of the dollar.
Global indices tumbled, although depressing sentiment improved somewhat during US business hours. Wall Street moved away from intraday lows, although only the Nasdaq Composite was able to post some gains.
Government bonds soared and yields fell to new weekly lows. The yield on the 10-year Treasury note fell to 1.22% and recovered to 1.24% at the end of the day.
Gold prices fell amid prevailing demand for the dollar, ending the day at $ 1,777 a troy ounce. Crude oil prices also fell, rebounding modestly before the close. The WTI ended the day at $ 63.70 a barrel.
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