A dramatic dollar reversal from a 20-year high prompts some short-covering around GBP/USD. Dovish expectations from the Fed, rising US bond yields and a risk-off mood should limit dollar losses. The gloomy economic outlook for the UK suggests that the recovery attempt is likely to be short-lived. The pair GBP/USD it has bounced from the […]
Tag: RiskAversion
AUD/USD flirts with a multi-week low around 0.6850
AUD/USD falls to a multi-week low on Monday and is under pressure from a combination of factors. Bets on aggressive Fed rate hikes and high US bond yields push the dollar to a 20-year high. The risk-averse environment also benefits the dollar, which is a safe haven, and weighs on the risk-sensitive Aussie. The pair […]
USD/CHF Hits Two-Week Highs Amid Sustained Dollar Buying
USD/CHF gains traction for the sixth day in a row and rises to a two-week high on Monday. Aggressive expectations from the Fed continue to support the dollar and continue to support the upward movement. Recession fears and risk-off mood benefit safe-haven CHF and appear to limit pair’s gains The pair USD/CHF it continues its […]
USD/CAD pulls back from one-month highs, downside remains limited
USD/CAD struggles to capitalize on modest intraday gains to break above one-month highs. A rally in crude oil prices underpins the loonie and acts as a headwind for spot prices. The aggressive expectations of the Fed and the risk aversion environment boost the dollar and limit the falls. The pair USD/CAD it retraces from the […]
NZD/USD sinks towards 0.6200, fresh monthly low amid strong USD/risk aversion
NZD/USD continues to lose ground for the fifth consecutive day and is approaching the monthly low. Aggressive expectations from the Fed and rising US bond yields underpin the dollar and put pressure on the pair. Recession fears also benefit the safe-haven dollar and keep flows away from the risk-sensitive kiwi. The pair NZD/USD remains under […]
EUR/USD extends sell-off below 1.0200 as dollar bulls refuse to budge
The EUR/USD pair is undergoing heavy selling as the US dollar continues to rise amid risk aversion. Recession fears as Germany’s energy crisis deepens adds pressure to the euro. The sell-off in Treasury yields does not support the pair. The EUR/USD it is falling like a house of cards, having given way to the 1.0200 […]
USD/JPY approaches 135.00 amid dollar strength inspired by NFP report
USD/JPY recovers to a one-week high in reaction to stellar US jobs data. The US economy added 528,000 jobs in July and the unemployment rate fell to 3.5%. The risk aversion momentum does not benefit the JPY, which is a safe haven, nor does it hinder the strong move higher. The pair USD/JPY receives aggressive […]
Forex Today – Asian Session: Dollar Strengthens Amid US-China Tensions
What to watch for on Wednesday, August 3: Risk aversion once again benefited the dollar. The tensions arose when the visit of the president of the US House of Representatives, Nancy Pelosi, to Taiwan became known. Pelosi supports the local government against the will of China, which has fueled geopolitical tensions between the two major […]
GBP/USD Price Analysis: Bounces back above 1.2200, bearish amid modest USD strength
GBP/USD lowers on Tuesday, paring some of overnight gains to one-month highs. Nervousness over Pelosi’s visit to Taiwan boosts the safe-haven dollar and exerts downward pressure. The formation of an ascending channel favors the prospects for some buying on dips. The pair GBP/USD has seen some selling on Tuesday and extends the modest overnight pullback […]
AUD/USD Price Analysis: Breaking Rising Wedge Amid US-China Troubles
AUD/USD moves lower on RBA dovish attitude and US-China issues over Taiwan. The RBA raises key rates by 50 basis points but says it is not on a pre-set tightening path. A possible breakout of the ascending channel on the daily chart points to the 21-day SMA at 0.6873. AUD/USD remains below 0.6900, shedding almost […]