untitled design

Forex Today: Dollar builds on last week’s gains

This is what you need to know to trade today monday september 5:

The US dollar index DXY maintains its upward momentum after gaining 0.7% last week and has reached its highest level in two decades above 110.00 early on Monday. Market caution helps the dollar continue to outperform its rivals as investors wait investor confidence and retail sales data for the euro zone, while keeping an eye on the news surrounding the energy crisis. The US market will remain closed due to the Labor Day holiday, and trading action could remain subdued in the second half of the day.

Gazprom announced late on Friday that it had cut off gas flows to Europe after detecting an oil leak. The gas supplier refrained from setting a maintenance duration period. Siemens said Nord Stream should have other operational turbines at the compressor station where the leak was detected and argued that there was no reason for the operation of the gas pipeline to stop completely. Over the weekend, Gazprom said it would deliver 42.7 million cubic meters of natural gas through Ukraine, but this did not allow the common currency to find demand earlier in the week.

Meanwhile, data from China showed that Caixin Services PMI fell to 55 in August from 55.5 in July.

The EUR/USD has fallen below 0.9900 for the first time since October 2002, before recovering modestly in the early European morning. At time of writing, the pair is down 0.5% on the day, trading at 0.9902. Euro zone retail sales are forecast to decline 0.7% in July.

The GBP/USD moves lower amid dollar strength during and falls below 1.1500. The pair remains down around 1.1480. Later, the UK Conservative Party to announce the result of the leadership contest from the UK at 11:30 GMT.

The USD/JPY is struggling to gain any upside momentum as risk-off sentiment in the markets helps the Japanese yen find demand. The pair is trading in a relatively tight range above 140.00.

The Prayed staged a decisive rebound on Friday, but ended up closing the week in negative territory. XAU/USD remains relatively quiet early on Monday as US bond markets remain closed.

The Bitcoin continues to move sideways below $20,000 and the ethereum remains stable around $1,500.

Source: Fx Street

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights


Most popular