Forex Today: The dollar remains firm after last week’s rise

This is what you need to know to trade today monday august 22:

The dollar retains its strength on Monday after posting impressive gains against its rivals last week. The Dollar Index rose 2.3% and posted its biggest gain in a week last week. Today it trades slightly higher around 108.20. The Federal Reserve Bank of Chicago’s national activity index for July will be published on the US economic docket, and Canada will publish new home price index data. In the absence of any big impact data releases, investors will also be keeping an eye on the perception of risk. In the early European session, US stock index futures are down between 0.45% and 0.65%.

Although markets are still undecided on the magnitude of the Fed’s rate hike in September, Reuters reported that only 18 of 94 economists polled in a recent poll expected the US central bank to opt for a rate hike. 75 basis points (bp). However, CME Group’s FedWatch tool shows that markets are pricing in a 48.5% chance of a 75 basis point rate hike next month.

During Asian trading hours, the People’s Bank of China announced that it had lowered the one-year loan prime rate and the five-year loan prime rate by 5 and 13 points, respectively, to 3.65% and 4.3%. This dovish move from the Chinese central bank helped the AUD and NZD hold firm against the USD earlier in the week. At the time of writing this article, the pair NZD/USD is up 0.53% on the day, at 0.6200, and the pair AUD/USD gain 0.42% at 0.6900.

The pair EUR/USD struggling to recover after last week’s sharp drop and trading below 1.0050. According to several media outlets, Russia plans to shut down the Nord Stream gas pipeline for three days for maintenance at the end of the month.

The GBP/USD it lost nearly 300 points last week and is still trading lower at a pass of 1.1800.

The USD/JPY It consolidates last week’s gains and trades in a relatively tight channel around 137.00 early on Monday.

The Prayed posted losses for five consecutive days and remains under modest bearish pressure in the European morning on Monday. At time of writing, XAU/USD is trading in negative territory, slightly above $1,740.

After suffering heavy losses last Friday, the Bitcoin rallied modestly over the weekend, but struggled to build upside momentum. BTC/USD is trading in negative territory below $21,500 on Monday. The ethereum it is down more than 2% on the day, and continues to push lower towards $1,500.

Source: Fx Street

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