The dollar benefits from global growth concerns, gold retreats, cryptos advance

This is what you need to know to trade today Monday, August 16:

Markets start the week with concerns about weaker global growth following disappointing Chinese data, a drop in US consumer confidence and COVID alerts. The Taliban’s victory in Afghanistan is also weighing on sentiment. Gold retreats after its rise while cryptos advance.

Risk aversion:Markets are in a subdued mood, with stocks on the defensive and the safe-haven dollar on the rise. China reported a 6.4% increase in industrial production in July and an 8.5% rise in retail sales, both worse than expected. Investors are still digesting the collapse in the University of Michigan’s preliminary consumer sentiment index to 71 points, below the worst of the pandemic.

The officials of the Federal Reserve They are divided on the reduction of the bank’s bond buying scheme, with some calling for immediate action and others questioning the recovery. Fed Chairman Jerome Powell will speak Tuesday.

Infrastructure: The United States Congress is ready to debate and advance two spending bills: a smaller, bipartisan one and a larger one, backed only by Democrats.

The Taliban have taken over Kabul, consolidating their victory in Afghanistan. While these events do not have an instant economic impact, the rapid takeover and concerns about future instability in the region also weigh on sentiment.

The COVID-19 cases they continue to rise in many regions, leading to harsher lockdowns in Australia and Japan. The safe-haven yen is on the rise, shrugging off Japan’s better-than-expected GDP rise of 0.3% in the second quarter. Infections also continue to rise in the United States and China.

The EUR/USD It has fallen back from 1.18 amid worsening moods and a German opinion poll showing the ruling CDU / CSU bloc is losing ground ahead of September elections.

GBP/USD hovering around 1.3850 as UK covid cases stopped falling. Britain is loosening its self-dislocation rules.

The oro it is trading around $ 1,770, away from the highs it reached on Friday, but above the levels of its crash. The precious metal’s correlation with US Treasury yields appears to have loosened.

See Gold Weekly Forecast: XAU / USD looks to extend bounce ahead of FOMC Minutes

cryptocurrencies: Bitcoin is consolidating its gains, hovering above $ 47,000. Ethereum is trading around $ 3,200. Other digital assets also provide interesting settings.

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