Categories: Markets

Forex Today – Asian Session: The Dollar Wins a Battle, Not a War Yet

What you need to know on Wednesday, April 21:

The dollar extended its slide earlier in the day, to hit new monthly lows against most major rivals, but reversed course during the European morning amid the bleak tone of local equities. Wall Street fell sharply, providing another boost to the US currency.

EUR / USD posted a modest intraday decline to 1.2030, while the pound was among the worst performers, as GBP / USD trades near 1.3900 after breaking above 1.4008.

To exacerbate the depressing mood, gold prices plummeted midway through the US session after a House panel passed a bill that would open up OPEC’s ground to antitrust lawsuits over production cuts. It is not yet clear whether the bill will be considered by the full chamber, but the incumbent lowered the WTI to $ 61.46 a barrel. The raw material recovered before the close and stood at $ 62.50 a barrel.

The Canadian dollar tumbled against its American rival amid falling oil prices. USD / CAD closed at 1.2614. AUD / USD was also down but held at 0.7700.

Gold prices, on the other hand, rose, and the shiny metal settled at $ 1,779.50 a troy ounce.

US Treasury yields weakened, but the correlation to the dollar broke down. The 10-year Treasury yield fell to 1,557%, ending the day just above that low.

The head of the US Federal Reserve, Jerome Powell, said that too low inflation hurts American families and businesses. He reiterated that the central bank is fully committed to “both legs of our dual mandate” and said once again that they expect inflation to advance this year, “in part reflecting transitory factors as the economy strengthens.”

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