What you need to know on Friday, September 10:
The dollar fell along with US government bond yields. The 10-year Treasury yield fell to 1,287%, passing the critical level of 1.30% after a disappointing 30-year yield auction. The United States auctioned 30-year bonds at 1.91%, down from 2.04% previously. As yields stabilized near daily lows before the close, the dollar also held near its lows against other currencies.
The EUR / USD pair is trading around 1.1830 after a disappointing monetary policy decision by the ECB. As widely anticipated, the ECB kept its rates unchanged, with the main refinancing rate at 0.00%. The central bank also kept the emergency bond purchase program (PEPP) at 1.85 billion euros until at least March 2022, although it will continue at a “moderately slower pace.” Furthermore, APP purchases will continue at a monthly rate of € 20 billion for as long as necessary. However, the authorities added that they are ready to adjust all instruments to ensure that inflation stabilizes at its 2% target in the medium term.
The pound was among the best performers, helped by the absence of news from the UK. GBP / USD approached its weekly high of 1.3867, ending the day around 1.3840.
Commodity-linked currencies posted modest intraday gains versus their US rival, as the soft tone of global indices partially offset the dollar’s weakness. USD / CAD is trading around 1.2650 while AUD / USD is at 0.7370.
Falling yields sent USD / JPY down to 109.61, currently trading close.
Gold prices ranged from profit to loss, but couldn’t find a way. XAU / USD is trading slightly higher daily, around $ 1,793 a troy ounce. On the other hand, crude oil prices were considerably lower amid a worse-than-anticipated EIA inventory report, which showed that inventories were down 1.529 billion. The WTI closed at around $ 68.00 a barrel.
Wall Street failed to retain modest intraday gains and ended the day in the red, with all major indices posting modest losses.
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