Forex Today: Dollar Pulls Back Amid Improving Market Sentiment

This is what you need to know to trade today tuesday september 27:

The observed positive change in risk sentiment It makes it difficult for the dollar to continue to outperform rivals early on Tuesday with the dollar index slipping back towards 113.00 after Monday’s volatility. US stock index futures are up more than 1% in early European trading and the 10-year US Treasury yield is down 2% on the day. August Durable Goods Orders and New Home Sales will be the highlights on the US economic docket throughout the day. Consumer confidence data for September from the Conference Board will also be considered for a further boost.

See: US Consumer Confidence Preview: Short-Term Relief or More Risk Aversion?

During the Asian session on Tuesday, Reuters has reported that Some of China’s big fund managers and brokers were asked to help stabilize the stock market. The Shanghai Composite Index gained more than 1% in the day after this event. On a negative note, the vice president of the Russian Security Council, Medvedev has said that they had the right to use nuclear weapons if necessary and pointed out that they were not bluffing. However, despite this comment, Germany’s Euro Stoxx 600 and DAX 30 indices are up around 1.2% in European morning trading.

After losing more than 50 points on Monday, the EUR/USD trades in positive territory above 0.9650 early Tuesday. The chief economist of the European Central Bank (ECB), Philip Lane, has said that the sizeable rate hike should make it clear to businesses and workers that demand conditions will be less favorable. Later in the session, ECB President Christine Lagarde will speak on financial stability challenges related to the digitization of financial services at an event organized by the Banque de France.

The GBP/USD managed to erase the big losses it suffered earlier in the week and closed little changed below 1.0800 on Monday. In response to the significant depreciation of the pound sterling, the Bank of England declared that they are closely following the evolution of the financial markets“As the Monetary Policy Committee has made clear, at its next scheduled meeting it will make a full assessment of the demand and inflation impact of government announcements and the fall in sterling,” the BoE said. Although these comments did not have a significant impact on the valuation of the British pound, the GBP/USD pair manages to trade in positive territory above 1.0800 on Tuesday.

The USD/JPY It gained nearly 100 points amid rising US bond yields on Monday, but struggled to maintain its bullish momentum. At time of writing, the pair is trading in a tight range above 144.00.

The Prayed takes advantage of the decline in US yields and gains almost 1% on the day near $1,640.

The Bitcoin it rose more than 2% on Monday and gains more upside momentum on Tuesday. At time of writing, BTC/USD is up 5% on the day to $20,200. The ethereum go up to $1,400 and earn 3.5% on the day.