What you need to know on Wednesday, September 22:
The dollar lost ground during the first half of the day, but regained most of it during the American afternoon. Asian and European stocks closed higher, while Wall Street opened with substantial gains, most of them losing before the close.
Market participants brushed off Evergrande-related concerns as attention turned to the US Federal Reserve’s monetary policy announcement. The US central bank is widely anticipated to remain on hold. , although it would present new economic projections and even provide clear clues on the reduction. If authorities decide to cut QE before the end of the year, the dollar is likely to benefit from a potential share sell-off.
The EUR / USD pair remained below 1.1750, ending the second day in a row unchanged at the 1.1720 price zone. GBP / USD failed to regain ground and held near its recent low, currently trading at around 1.13660.
USD / JPY resumed its slide and settled at 109.20 ahead of the Bank of Japan’s monetary policy announcement early Wednesday.
Commodity-linked currencies resumed their declines, with AUD / USD under pressure and trading around 0.7230 despite higher gold prices. USD / CAD is hovering around 1.2810, slightly higher on a daily basis.
Gold rose for two days in a row and is trading around $ 1,775 a troy ounce, while crude oil prices were flat. With WTI ending the day at $ 70.60 a barrel.
Yields on US Treasuries were flat, rising modestly on the day.