Here’s what you need to know to trade today, Thursday, September 10:
He United States Dollar (USD) The US dollar is struggling to retain its strength on Tuesday after outperforming its major rivals the previous day. The DXY Dollar Index is holding steady above 101.50 following Monday’s 0.4% gain, while the 10-year US Treasury bond yield is fluctuating slightly above 3.7%. The NFIB Business Optimism Index for August will be the only data highlight on the US economic docket ahead of Wednesday’s highly anticipated Consumer Price Index (CPI) readings.
US Dollar Price This Week
The table below shows the percentage change of the US Dollar (USD) against major currencies this week. The US Dollar was the strongest currency against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.33% | 0.24% | 0.79% | -0.01% | -0.00% | 0.31% | 0.45% | |
| EUR | -0.33% | -0.15% | 0.52% | -0.33% | -0.38% | -0.01% | 0.10% | |
| GBP | -0.24% | 0.15% | 0.55% | -0.18% | -0.24% | 0.12% | 0.24% | |
| JPY | -0.79% | -0.52% | -0.55% | -0.77% | -0.76% | -0.48% | -0.13% | |
| CAD | 0.00% | 0.33% | 0.18% | 0.77% | 0.04% | 0.30% | 0.61% | |
| AUD | 0.00% | 0.38% | 0.24% | 0.76% | -0.04% | 0.35% | 0.47% | |
| NZD | -0.31% | 0.00% | -0.12% | 0.48% | -0.30% | -0.35% | 0.13% | |
| CHF | -0.45% | -0.10% | -0.24% | 0.13% | -0.61% | -0.47% | -0.13% |
The heatmap shows percentage changes of major currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you choose the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change shown in the chart will represent the USD (base)/JPY (quote).
Data from China showed in the Asian session that the trade surplus widened to $91.02 billion in August from $84.65 billion. Exports rose 8.7% on an annual basis, while imports grew 0.5%. AUD/USD largely ignored these figures and the pair was last seen trading modestly higher on the day near 0.6670.
The UK’s Office for National Statistics (ONS) reported early on Tuesday that the ILO unemployment rate fell to 4.1% in the three months to July from 4.2%, as expected. The employment change was 265,000 in the same period, up from 97,000, and annual wage inflation, measured by average earnings excluding bonuses, eased to 5.1% from 5.4%, in line with analysts’ estimates. GBP/USD It rebounded towards 1.3100 after these figures from a multi-week low touched near 1.3050 earlier in the day.
Germany’s Destatis confirmed that the CPI rose by 1.9% year-on-year in August. This reading was in line with the initial estimate and market expectation. After closing the second consecutive trading day in negative territory on Monday, the CPI rose by 1.9% year-on-year in August. EUR/USD remains stable around 1.1050 on Tuesday morning in Europe.
He USD/JPY gained traction and closed in the green on Monday, snapping a four-day losing streak. The pair continues to rise early Tuesday and was last seen trading near 143.50.
After a quiet start to the week, the price of Gold gained traction amid falling US yields in the American session and closed above $2,500 on Monday. XAU/USD is trading in a narrow range in the European morning on Tuesday.
The feeling of risk FAQs
In the world of financial jargon, the two terms “risk-on” and “risk-off” refer to the level of risk that investors are willing to bear over the reference period. In a “risk-on” market, investors are optimistic about the future and are more willing to buy risky assets. In a “risk-off” market, investors start to “play it safe” because they are worried about the future and therefore buy less risky assets that are more certain to provide a return, even if relatively modest.
Typically, during periods of “risk appetite”, stock markets rise, and most commodities – except gold – also appreciate as they benefit from positive growth prospects. Currencies of countries that are major commodity exporters strengthen due to increased demand, and cryptocurrencies rise. In a “risk-off” market, bonds rise – especially major government bonds –, gold shines, and safe haven currencies such as the Japanese Yen, Swiss Franc and US Dollar benefit.
The Australian Dollar (AUD), Canadian Dollar (CAD), New Zealand Dollar (NZD) and minor currencies such as the Ruble (RUB) and South African Rand (ZAR) tend to rise in markets where there is “risk appetite”. This is because the economies of these currencies are highly dependent on commodity exports for growth, and these tend to rise in price during periods of “risk appetite”. This is because investors anticipate higher demand for commodities in the future due to increased economic activity.
The major currencies that tend to rise during periods of “risk aversion” are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The Dollar, because it is the world’s reserve currency and because in times of crisis investors buy US government debt, which is considered safe because the world’s largest economy is unlikely to default. The Yen, because of increased demand for Japanese government bonds, since a large proportion are held by domestic investors who are unlikely to part with them, even in a crisis. The Swiss Franc, because strict Swiss banking legislation offers investors greater capital protection.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
