Markets stabilize after Delta-driven slide, dollar holds

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This is what you need to know to trade today Tuesday, July 20:

Markets have been trying to stabilize after falling on Monday as investors worry about the rapid spread of the Delta variant of covid. The safe-haven US dollar is holding on to its gains, Bitcoin has dropped below $ 30,000 and gold has rebounded from a drop below $ 1,800.

Stock market crash: The rapid spread of the Delta variant of covid around the world sent global stocks tumbling, with the S&P 500 suffering its worst day since May. Asian and European stocks have followed, while S&P 500 futures show signs of stabilization.

I fly to the shelter I keep: The US dollar rose across the board, despite the move by US debt. 10-year Treasury yields fell below 1.20%. An inverse correlation between returns and the USD appears to be emerging. Yields have moved higher, allowing the dollar to take a breather early Tuesday.

The US dollar reached the highest level in a year against the Australian and New Zealander. These “risk” currencies are also exposed to a rebound in covid cases in Asia, with Malaysia and Indonesia standing out. Infections were also detected in the Tokyo Olympic Village, however, the yen japonés it has benefited as a safe haven currency, with USD / JPY hovering around 109.50.

The GBP/USD it fell below the double bottom of 1.3670 on the UK’s “Freedom Day”, which was marred by a “pingdemic”. Hundreds of thousands of Britons were called upon to self-isolate after being exposed to people who tested positive. Activity in London remained mute despite the removal of most restrictions, as cases remain high. The pair remains depressed around 1.3660.

The EUR/USD it is trading below 1.18 and above the 15-week low of 1.1764, but remains pressured as infections rise in Europe. The common currency is used for financing. Investors await the decision of the European Central Bank on Thursday.

The oro it fell below $ 1,800 on Monday, but recovered quickly, trading around $ 1,815 early Tuesday. Risk aversion sentiment compounded the drop in oil prices, sending WTI around $ 66. Crude prices had suffered from OPEC + ‘s decision to increase production.

The Bitcoin has dropped below $ 30,000 and Ethereum fell to $ 1,750 in a cryptocurrency sale that has wiped out about $ 100 billion from the value of digital assets. Dogecoin and Shiba have not been spared.

US housing starts and building permits will be released on Tuesday, but investors will be watching for news and perhaps developments related to Washington’s infrastructure spending. Covid cases are also on the rise in the US, especially in under-vaccinated areas.

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